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Non-profit means not conducted or maintained for the purpose of making a profit. Instead, a non-profit operates to serve a public good. As an entire sector, non-profits include hospitals, universities, trade organizations, voluntary associations and religious organizations.

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Nonprofit Definition
From Wikipedia, the free encyclopedia

A nonprofit organization (sometimes abbreviated to "not-for-profit", "non-profit", or "NPO") is an organization whose primary objective is to support some issue or matter of private interest or public concern for non-commercial purposes. Nonprofits may be involved in an innumerable range of areas relating to the arts, charities, education, politics, religion, research, or some other endeavor.

The difference between nonprofit organizations and profit-making organizations
Most experts consider that it is the legal and ethical restrictions on the distribution of profits to owners or shareholders which fundamentally distinguishes non-profits from commercial enterprises. A more precise term is 'not for profit', rather than 'nonprofit', and this is often used in legislation and texts.

Nonprofits generally do not operate to generate profit, and this characteristic is popularly considered to be the defining characteristic of such organizations. However, a non-profit organization may accept, hold and disburse money and other things of value. It may also legally and ethically trade at a profit. The extent to which it can generate income may be constrained, or the use of those profits may be restricted. Nonprofits are therefore typically funded by donations from the private or public sector, and often have tax exempt status. Private donations may sometimes be tax deductible.

A charity is a type of non-profit organization, and some foundations and non-governmental organizations may also be nonprofit organizations.

A not for profit organization may have members as opposed to shareholders.

 

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