Nonprofit organization

organization operated for a collective benefit

A nonprofit organization (NPO, also spelled nonprofit organisation) is an organization that uses surplus revenues to achieve its goals rather than distributing them as profit or dividends.  Although nonprofit organizations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans.  Designation as a nonprofit does not mean that the organization does not intend to make a profit, but rather that the organization has no owners and that the funds realised in the operation of the organization will not be used to benefit any owners.  The extent to which an NPO can generate surplus revenues may be constrained or use of surplus revenues may be restricted.



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