Notforprofit

Not-for-profit, often written as not-for-profit or nonprofit, is a designation for organizations established to pursue social, charitable, educational, religious, or other public-benefit objectives, reinvesting any surplus income to advance their mission rather than distributing profits to private individuals or shareholders.

In many countries, not-for-profit status is a legal designation that may carry tax exemptions and allow donors to deduct gifts. Revenues typically come from donations, grants, government subsidies, membership dues, and fees for services. Surpluses are reinvested in programs and infrastructure to support ongoing activities aligned with the organization's mission.

Common examples include charities, foundations, membership associations, religious congregations, schools and universities, hospitals, museums, think tanks, and community development organizations. Not-for-profits may operate locally, nationally, or internationally, often addressing social, cultural, educational, health, or humanitarian needs.

Governance is usually handled by a board of directors or trustees, with day-to-day management by executives. Financial transparency is pursued through annual reports, financial statements, audits, and, in many jurisdictions, regulatory filings. Many not-for-profits rely on volunteers alongside paid staff and rely on fundraising and grant-writing to sustain operations.

Not-for-profits may collaborate with for-profit entities and sometimes operate social enterprises to fund mission-driven activities. Unlike for-profit companies, profits and surplus funds are not distributed to owners or shareholders but are reinvested to further the organization's objectives.

Common challenges include fundraising volatility, regulatory compliance, governance scrutiny, and the risk of mission drift. Effective governance, clear impact measurement, and sustainable financing are central to long-term viability.