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Not-for-profit organization - Wikipedia
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class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-fy mw-list-item"><a href="https://fy.wikipedia.org/wiki/Not-for-profit" title="Not-for-profit – Western Frisian" lang="fy" hreflang="fy" data-title="Not-for-profit" data-language-autonym="Frysk" data-language-local-name="Western Frisian" class="interlanguage-link-target"><span>Frysk</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q116834119#sitelinks-wikipedia" title="Edit interlanguage links" class="wbc-editpage">Edit links</a></span></div> </div> </div> </div> </header> <div class="vector-page-toolbar"> <div class="vector-page-toolbar-container"> <div id="left-navigation"> <nav aria-label="Namespaces"> <div id="p-associated-pages" class="vector-menu vector-menu-tabs mw-portlet mw-portlet-associated-pages" > <div class="vector-menu-content"> <ul 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<div class="vector-column-end"> <div class="vector-sticky-pinned-container"> <nav class="vector-page-tools-landmark" aria-label="Page tools"> <div id="vector-page-tools-pinned-container" class="vector-pinned-container"> </div> </nav> <nav class="vector-appearance-landmark" aria-label="Appearance"> <div id="vector-appearance-pinned-container" class="vector-pinned-container"> <div id="vector-appearance" class="vector-appearance vector-pinnable-element"> <div class="vector-pinnable-header vector-appearance-pinnable-header vector-pinnable-header-pinned" data-feature-name="appearance-pinned" data-pinnable-element-id="vector-appearance" data-pinned-container-id="vector-appearance-pinned-container" data-unpinned-container-id="vector-appearance-unpinned-container" > <div class="vector-pinnable-header-label">Appearance</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-appearance.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-appearance.unpin">hide</button> </div> </div> </div> </nav> </div> </div> <div id="bodyContent" class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"><span class="mw-redirectedfrom">(Redirected from <a href="/w/index.php?title=Not-for-profit&redirect=no" class="mw-redirect" title="Not-for-profit">Not-for-profit</a>)</span></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">Not to be confused with <a href="/wiki/Nonprofit_organization" title="Nonprofit organization">Nonprofit organization</a>, <a href="/wiki/Non-governmental_organization" title="Non-governmental organization">Non-governmental organization</a>, or <a href="/wiki/Charitable_organization" title="Charitable organization">Charitable organization</a>.</div> <div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Legal entity that retains surplus funds</div> <p class="mw-empty-elt"> </p> <style data-mw-deduplicate="TemplateStyles:r1251242444">.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-Globalize plainlinks metadata ambox ambox-content ambox-globalize" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><span><img alt="Globe icon." src="//upload.wikimedia.org/wikipedia/commons/thumb/b/bd/Ambox_globe_content.svg/48px-Ambox_globe_content.svg.png" decoding="async" width="48" height="40" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/b/bd/Ambox_globe_content.svg/73px-Ambox_globe_content.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/b/bd/Ambox_globe_content.svg/97px-Ambox_globe_content.svg.png 2x" data-file-width="350" data-file-height="290" /></span></span></div></td><td class="mbox-text"><div class="mbox-text-span">The examples and perspective in this article <b>may not represent a <a href="/wiki/Wikipedia:WikiProject_Countering_systemic_bias" title="Wikipedia:WikiProject Countering systemic bias">worldwide view</a> of the subject</b>.<span class="hide-when-compact"> You may <a class="external text" href="https://en.wikipedia.org/w/index.php?title=Not-for-profit_organization&action=edit">improve this article</a>, discuss the issue on the <a href="/wiki/Talk:Not-for-profit_organization" title="Talk:Not-for-profit organization">talk page</a>, or <a href="/wiki/Wikipedia:Article_wizard" title="Wikipedia:Article wizard">create a new article</a>, as appropriate.</span> <span class="date-container"><i>(<span class="date">November 2023</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p>A <b>not-for-profit</b> or <b>non-for-profit organization</b> (<b>NFPO</b>) is a <a href="/wiki/Legal_Entity" class="mw-redirect" title="Legal Entity">legal entity</a> that does not distribute surplus funds to its members and is formed to fulfill specific objectives.<sup id="cite_ref-:0_1-0" class="reference"><a href="#cite_note-:0-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> An NFPO does not earn profit for its owners, as any <a href="/wiki/Revenue" title="Revenue">revenue</a> generated by its activities must be put back into the organization.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p><p>While not-for-profit organizations and <a href="/wiki/Nonprofit_organization" title="Nonprofit organization">non-profit organizations</a> (NPO) are distinct legal entities, the terms are sometimes used interchangeably.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> An NFPO must be differentiated from a NPO as they are not formed explicitly for the <a href="/wiki/Public_good_(economics)" title="Public good (economics)">public good</a> 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.<sup id="cite_ref-:0_1-1" class="reference"><a href="#cite_note-:0-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Functions">Functions</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Not-for-profit_organization&action=edit&section=1" title="Edit section: Functions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>An NFPO does not have the same obligation as an NPO to serve the public good, and as such it may be used to apply for <a href="/wiki/Tax_exemption" title="Tax exemption">tax-exempt</a> status as an organization that serves its members and does not have the goal of generating profit.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> An example of this is a <a href="/wiki/Sports_club" title="Sports club">sports club</a>, which exists for the enjoyment of its members and thus would function well as an NFPO, with revenue being re-invested into improving the organization.<sup id="cite_ref-:0_1-2" class="reference"><a href="#cite_note-:0-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> </p><p>These organizations typically file for tax exemption in the United States under section 501(c)(7) of the <a href="/wiki/Internal_Revenue_Code" title="Internal Revenue Code">Internal Revenue Code</a> as social clubs.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> Common ventures for which NFPOs are established include: </p> <ul><li>Charities</li> <li>Sports clubs</li> <li>Foundations</li> <li>Private schools</li> <li>Universities</li> <li>Museums</li> <li>Churches</li> <li>Social welfare organizations</li></ul> <p>Charities, as NFPOs, function under the premise that any revenue generated should be used to further their charitable missions rather than distribute profits among members. This revenue might come from donations, fundraising, or other activities undertaken to support their charitable cause. </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Not-for-profit_organization&action=edit&section=2" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style><div class="div-col" style="column-width: 22em;"> <ul><li><a href="/wiki/501(c)_organization" title="501(c) organization">501(c) organization</a></li> <li><a href="/wiki/Community_organization" title="Community organization">Community organization</a></li> <li><a href="/wiki/Fundraising" title="Fundraising">Fundraising</a></li> <li><a href="/wiki/Nonprofit_organization" title="Nonprofit organization">Nonprofit organization</a></li> <li><a href="/wiki/Mutual_organization" title="Mutual organization">Mutual organization</a></li> <li><a href="/wiki/Non-commercial_activity" title="Non-commercial activity">Non-commercial activity</a></li> <li><a href="/wiki/Non-governmental_organization" title="Non-governmental organization">Non-governmental organization</a></li> <li><a href="/wiki/Nonprofit_organization_laws_by_jurisdiction" title="Nonprofit organization laws by jurisdiction">Nonprofit organization laws by jurisdiction</a></li> <li><a href="/wiki/Non-profit_organizations_and_access_to_public_information" title="Non-profit organizations and access to public information">Non-profit organizations and access to public information</a></li> <li><a href="/wiki/Non-profit_technology" title="Non-profit technology">Non-profit technology</a></li> <li><a href="/wiki/Public-benefit_nonprofit_corporation" title="Public-benefit nonprofit corporation">Public-benefit nonprofit corporation</a></li> <li><a href="/wiki/Supporting_organization_(charity)" title="Supporting organization (charity)">Supporting organization (charity)</a></li> <li><a href="/wiki/United_States_non-profit_laws" class="mw-redirect" title="United States non-profit laws">United States non-profit laws</a></li> <li><a href="/wiki/Voluntary_sector" title="Voluntary sector">Voluntary sector</a></li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Not-for-profit_organization&action=edit&section=3" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-:0-1"><span class="mw-cite-backlink">^ <a href="#cite_ref-:0_1-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-:0_1-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-:0_1-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFHeaslip2020" class="citation web cs1">Heaslip, Emily (30 March 2020). <a rel="nofollow" class="external text" href="https://www.uschamber.com/co/co/start/strategy/nonprofit-vs-not-for-profit-vs-for-profit">"Nonprofit, Not-for Profit & For-Profit Organizations Explained"</a>. <i>uschamber.com</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20230214144546/https://www.uschamber.com/co/co/start/strategy/nonprofit-vs-not-for-profit-vs-for-profit">Archived</a> from the original on 14 February 2023<span class="reference-accessdate">. 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Retrieved <span class="nowrap">14 February</span> 2023</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Ashcroft+%26+Associates&rft.atitle=Differences+Between+Nonprofit+and+Not+For+Profit&rft.date=2015-09-24&rft.aulast=Associates&rft.aufirst=Ashcroft+%26&rft_id=https%3A%2F%2Fwww.ashcroftassociates.ca%2Fdifferences-between-nonprofit-and-not-for-profit%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANot-for-profit+organization" class="Z3988"></span></span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFDavis" class="citation web cs1">Davis, Kylie. <a rel="nofollow" class="external text" href="https://givebutter.com/blog/non-profit-vs-not-for-profit">"Nonprofit vs. not-for-profit: How to tell them apart"</a>. <i>Givebutter</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20230214144545/https://givebutter.com/blog/non-profit-vs-not-for-profit">Archived</a> from the original on 14 February 2023<span class="reference-accessdate">. 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Retrieved <span class="nowrap">14 February</span> 2023</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=smartasset&rft.atitle=Non-Profit+vs.+Not-for-Profit%3A+What%27s+the+Difference%3F&rft.date=2023-02-08&rft.aulast=Lake&rft.aufirst=Rebecca&rft_id=https%3A%2F%2Fsmartasset.com%2Ffinancial-advisor%2Fnon-profit-vs-not-for-profit&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANot-for-profit+organization" class="Z3988"></span></span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.irs.gov/charities-non-profits/other-non-profits/social-clubs">"Social Clubs"</a>. <i>Internal Revenue Service</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20221130025940/https://www.irs.gov/charities-non-profits/other-non-profits/social-clubs">Archived</a> from the original on 30 November 2022<span class="reference-accessdate">. Retrieved <span class="nowrap">14 February</span> 2023</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Internal+Revenue+Service&rft.atitle=Social+Clubs&rft_id=https%3A%2F%2Fwww.irs.gov%2Fcharities-non-profits%2Fother-non-profits%2Fsocial-clubs&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANot-for-profit+organization" class="Z3988"></span></span> </li> </ol></div></div> <!-- NewPP limit report Parsed by mw‐web.codfw.main‐f69cdc8f6‐r24xm Cached time: 20241122151728 Cache expiry: 2592000 Reduced expiry: false Complications: [vary‐revision‐sha1] CPU time usage: 0.280 seconds Real time usage: 0.364 seconds Preprocessor visited node count: 838/1000000 Post‐expand include size: 18253/2097152 bytes Template argument size: 1193/2097152 bytes Highest expansion depth: 12/100 Expensive parser function count: 7/500 Unstrip recursion depth: 1/20 Unstrip post‐expand size: 21873/5000000 bytes Lua time usage: 0.168/10.000 seconds Lua memory usage: 4783297/52428800 bytes Number of Wikibase entities loaded: 0/400 --> <!-- Transclusion expansion time report (%,ms,calls,template) 100.00% 333.035 1 -total 37.60% 125.218 1 Template:Reflist 32.45% 108.068 5 Template:Cite_web 20.88% 69.553 1 Template:Short_description 15.60% 51.949 1 Template:Globalize 14.45% 48.133 1 Template:Ambox 11.61% 38.666 1 Template:Distinguish 10.94% 36.427 2 Template:Pagetype 7.53% 25.093 1 Template:Use_American_English 6.46% 21.520 2 Template:DMCA --> <!-- Saved in parser cache with key enwiki:pcache:idhash:41044060-0!canonical and timestamp 20241122151728 and revision id 1219696925. 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