Nonprofits

Nonprofits are organizations that operate for purposes other than personal gain and reinvest any surplus revenue in furthering their mission. They are typically formed to pursue activities in areas such as charity, education, religion, health, the arts, culture, environment, and social advocacy. While they can pursue public benefits, they are not owned by private individuals and profits are not distributed to shareholders or members.

Governance and leadership: Nonprofits are usually governed by a voluntary board of directors or trustees responsible for ensuring mission alignment, financial stewardship, and legal compliance. Day-to-day management is carried out by paid staff or volunteers, and governance structures can vary widely by country and organization type.

Funding and legal status: Nonprofits often rely on donations, grants, government support, and earned income from programs or services. In many jurisdictions they may qualify for tax-exempt status, which can provide tax relief for the organization and donors. In exchange, they are subject to regulatory reporting and accountability requirements, such as financial audits and transparency measures.

Activities: Nonprofits carry out programs and services, conduct research, advocate for policy changes, and raise awareness around specific issues. They may operate locally, nationally, or internationally, and they frequently collaborate with government agencies, other nonprofits, or the private sector.

Impact and challenges: The impact of nonprofits is typically assessed through outcomes, outputs, and community benefit. Common challenges include funding volatility, governance conflicts, regulatory changes, and competition for donor support. The sector plays a central role in civil society by addressing needs that fall outside market or government provision.