Notforprofits

Notforprofits, or not-for-profit organizations, are entities organized to pursue charitable, educational, religious, scientific, or public benefit missions rather than to generate profits for owners. Surplus revenues are reinvested in the mission.

They are typically governed by a board of directors or trustees and operate under articles of incorporation and bylaws. They may seek tax-exempt status under national or regional law and face governance, reporting, and accountability requirements. Assets are dedicated to the stated purpose, and funds are restricted to mission-related activities.

Funding commonly comes from donations, grants, government contracts, and program service fees. Their activities can include charitable work, education, research, cultural preservation, social services, and advocacy. They may also run membership programs or rely on volunteers. In the United States, many not-for-profits operate as 501(c)(3) organizations with tax-exempt status, allowing donors to deduct contributions on federal taxes. Similar tax-exemption schemes exist in other countries.

Not-for-profits are distinct from for-profit corporations. Common forms include charities, foundations, associations, and religious or educational institutions, ranging from small community groups to international organizations.

The sector faces challenges such as fundraising volatility, governance quality, mission drift, and compliance costs. Accountability and transparent reporting, as well as impact measurement, are increasingly emphasized to demonstrate public benefit.