What does non profit organization mean?

Pronunciation

/ˌnɑn ˈprɒfɪt ˌɔːrɡənɪˈzeɪʃən/

Part of Speech

Noun

Definition

An organization that uses its income and profits to further its goals, rather than distributing them as dividends or profits to individuals or shareholders.

Examples

The local food bank is a non-profit organization that relies on donations to serve the community.
The American Red Cross is a well-known non-profit organization that provides disaster relief and blood donations.

Synonyms

Charity
Foundation

Antonyms

For-profit organization
Corporation

Additional Information

Non-profit organizations are often exempt from taxes and are governed by a board of directors or trustees. They can operate in various fields, including education, healthcare, environmental conservation, and social services. Non-profit organizations rely on donations, grants, and fundraising events to support their causes.

In the United States, non-profit organizations are typically designated as 501(c)(3) organizations by the Internal Revenue Service (IRS). This designation indicates that the organization is exempt from federal income tax and that donations to the organization are tax-deductible.

The term “non-profit organization” originated in the late 19th century, as a response to the growing number of charitable organizations and philanthropic efforts.

Usage Notes

When referring to a non-profit organization, use the full phrase “non-profit organization” or the abbreviation “NPO” to avoid confusion with for-profit businesses.

Cultural References

Non-profit organizations have been featured in popular culture, such as in films like “Erin Brockovich” and “The Pursuit of Happyness.”

Idiomatic Expressions or Phrases

“Non-profit motive”
“Not-for-profit organization”

Related Words or Phrases

Charitable organization
Philanthropy

Collocations

“Non-profit organization providing”
“Non-profit organization working”

Frequency of Use

The term “non-profit organization” is commonly used in everyday language, particularly in contexts related to charity, volunteering, and social causes.

Common Misspellings

Non-profit orginization
Non-proft organization