nonbusiness

Nonbusiness is a broad term used to describe activities, income, organizations, or sectors that are not primarily focused on profit through commercial trade. In everyday language, it contrasts with business or for-profit activity and is often applied to settings such as nonprofit organizations, hobbyist activities, or government services that do not aim to generate profits.

In economics and accounting, nonbusiness refers to parts of activity that do not arise from the core commercial operations of an entity. For an individual, nonbusiness income might include interest or rental income outside of any business venture. For a company, nonbusiness activities are those not central to its primary line of business and may be accounted for separately or treated as ancillary.

In law and taxation, many jurisdictions distinguish business or active income from nonbusiness or passive income, and may tax the latter differently. Nonprofit organizations frequently pursue social, educational, charitable, or cultural purposes and are exempt from some taxes on their primary mission-related activities, while other revenue (unrelated to their exempt purpose) may be taxed under specific rules.

In the nonprofit sector, nonbusiness is often used to describe activities that advance a mission rather than generate profits. Such activities include outreach, advocacy, and service delivery that is shaped by public or charitable goals, though some revenue from these activities may be subject to separate tax considerations if it is not closely aligned with the organization’s exempt purpose.

The term is not tied to a single legal definition and its meaning can vary by context and jurisdiction. It is commonly used in finance, law, and policy discussions to distinguish profit-driven commerce from the broader realm of non-commercial, mission-oriented, or incidental activity.