Noprofit

Noprofit, typically written nonprofit in many contexts, refers to an organization established for public or mutual benefit rather than private gain. Its primary purpose is to advance a mission—charitable, educational, religious, scientific, literary, or community-oriented—rather than to earn profits for owners or shareholders. Any surplus revenues are reinvested in programs and services to further the organization's mission.

Legal form and governance are central to noprofits. They are usually incorporated as nonprofit corporations or analogous entities and are governed by a board of directors or trustees. They hold no shares, and profits are not distributed to individuals. The organization must operate in accordance with its stated mission and applicable laws, including transparency and accountability requirements. Many jurisdictions impose restrictions on political activities and on how funds can be used.

Funding for noprofits comes from donations, grants, membership dues, service fees, and fundraising activities. They often seek tax-exempt status, which in turn comes with reporting obligations and restrictions on the distribution of profits. In the United States, for example, many noprofits pursue federal tax-exempt status under section 501(c)(3) or related provisions, subject to annual reporting such as Form 990. Other countries have analogous frameworks, with charities regulated by separate agencies.

Noprofits span diverse sectors, including charities, educational institutions, religious organizations, research bodies, and cultural or community groups. The term can be used interchangeably with non-profit in everyday language, though some jurisdictions distinguish nonprofit from not-for-profit based on specific legal criteria. The core principle remains: activities are pursued to serve a public or mutual interest rather than to generate profit for individuals.