A not-for-profit organization, also known as a nonprofit organization, is a legally constituted entity operating for purposes other than generating profit for its owners or shareholders. These organizations often focus on charitable, educational, religious, scientific, or literary missions, relying on donations, grants, membership fees, and sometimes program revenue to fund their activities. They are typically tax-exempt, meaning they do not pay income tax on the revenue they receive, allowing them to reinvest more money into their missions. Transparency and accountability are key, with regular reporting requirements to ensure responsible financial management and program effectiveness.
Not-for-profit meaning with examples
- The local animal shelter, a not-for-profit, relies heavily on community donations and volunteer support to provide care for abandoned and rescued animals. They hold regular fundraising events and operate on a tight budget, focusing every dollar on improving the lives of the animals in their care. Their financial reports are publicly available and are managed by a board of volunteers. The organizations mission is rescue and rehabilitate animals.
- Doctors Without Borders, a well-known not-for-profit, provides medical care in conflict zones and countries affected by endemic diseases. Their teams offer emergency medical services, surgical procedures, and vaccinations, funded by donations from individuals, corporations, and governments. Their global operation demands high fundraising capacity and transparent operation across international lines. They have very strict accountability guidelines and are constantly under public scrutiny.
- A community theater group, organized as a not-for-profit, stages plays and musicals to enrich the local arts scene. Their revenue comes from ticket sales, sponsorships, and grants, supporting their efforts to provide accessible cultural events. They heavily depend on volunteers and their ability to reach out to the public. The organizations’ success relies on volunteer manpower and community participation.
- Many universities and colleges operate as not-for-profit institutions, reinvesting tuition fees and donations into research, scholarships, and educational programs. These institutions prioritize their educational mission over profit maximization, aiming to serve the public good. They are governed by a board of trustees and rely on a combination of government funding and charitable giving. Their research departments may receive external grants and support for individual endeavors.
- The Red Cross, a large not-for-profit, provides disaster relief and humanitarian aid around the world. They respond to natural disasters, conflicts, and health crises, distributing essential supplies and providing medical services. Their fundraising efforts are global, their response is very fast, and they have a wide network of local chapters that are all dedicated to serving the needs of the impacted community.
Not-for-profit Synonyms
charitable organization non-governmental organization (ngo) nonprofit non-profit not for profitNot-for-profit Antonyms
business commercial entity for-profit private sector profit-makingNot-for-profit Crossword Answers
9 Letters
NONPROFIT
21 Letters
NONPROFITORGANIZATION