Not-for-profit organization

Not to be confused with Nonprofit organization, Non-governmental organization, or Charitable organization.

A not-for-profit or non-for-profit organization (NFPO) is a legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives.[1] An NFPO does not earn profit for its owners, as any revenue generated by its activities must be put back into the organization.[2]

While not-for-profit organizations and non-profit organizations (NPO) are distinct legal entities, the terms are sometimes used interchangeably.[3] An NFPO must be differentiated from a NPO as they are not formed explicitly for the public good as an NPO must be, and NFPOs are considered "recreational organizations", meaning that they do not operate with the goal of generating revenue as opposed to NPOs.[1]

  1. ^ a b Heaslip, Emily (30 March 2020). "Nonprofit, Not-for Profit & For-Profit Organizations Explained". uschamber.com. Archived from the original on 14 February 2023. Retrieved 14 February 2023.
  2. ^ Associates, Ashcroft & (24 September 2015). "Differences Between Nonprofit and Not For Profit". Ashcroft & Associates. Archived from the original on 8 March 2023. Retrieved 14 February 2023.
  3. ^ Davis, Kylie. "Nonprofit vs. not-for-profit: How to tell them apart". Givebutter. Archived from the original on 14 February 2023. Retrieved 14 February 2023.