nonprofitable

Nonprofitable is an adjective used to describe something that does not generate profit or is not intended to be profitable. It can refer to a project, investment, business unit, or operation that yields negative or zero net income. It can also describe activities or activities within an organization that are undertaken for reasons other than earning a profit, such as social, charitable, or public-benefit objectives.

The term is distinct from nonprofit in legal or organizational terms. Nonprofit refers to a formal status under which an organization reinvests any surplus revenues to advance its mission rather than distributing profits to owners or shareholders. An entity can be nonprofit and still face periods or activities that are nonprofitable in accounting terms, relying on donations, grants, or subsidies to cover deficits. Conversely, a for-profit venture may be unprofitable for a period or in certain segments even while other parts remain profitable.

In usage, nonprofitable is less common in everyday language than unprofitable or not profitable. Unprofitable tends to describe the financial outcome of a specific venture, market, or period, whereas nonprofitable can emphasize the intention or broader category of activities not aimed at profit. In economic analysis, references to nonprofitable investments or nonprofitable initiatives highlight the challenge of achieving sustainability without sufficient revenue or external funding.

See also: nonprofit organization, profitability, loss, return on investment, funding.