What is Non-Profit Organization?

A definition of Non-Profit Organization

“A non-profit organization is an entity that operates for a charitable, educational, cultural, religious, or public service purpose and does not distribute its surplus funds to owners or shareholders.”

Non-Profit Organization in Business Glossary - What is a Non-Profit Organization?

Business Glossary > What is Non-Profit Organization?


Examples of Non-Profit Organization in a Sentence:

The non-profit organization focuses on providing education to underprivileged children.

Many donors contributed to the non-profit organization to support its mission.

She volunteers at a non-profit organization that helps homeless people.

Why is Non-Profit Organization Important in Business?

Understanding non-profit organizations is crucial because they play an essential role in addressing societal needs that government or private sectors can’t fully meet. They often support communities, drive social change, and provide vital services without the motive of profit.

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Associated Terms

Here are some associated business terms and synonyms for “Non-Profit Organization”:

  • NPO
  • Charitable Organization
  • Not-for-Profit

World Wildlife Fund (WWF)

Founded in 1961, the World Wildlife Fund (WWF) is a non-profit organization focused on wildlife conservation. They aim to preserve nature and reduce human impact on the environment through various initiatives around the globe.

Final Notes on Non-Profit Organization

Non-profit organizations should ensure transparency and accountability in their operations. Understanding their unique legal and tax status is crucial for compliance and sustainability.


This has been a definition of Non-Profit Organization meaning.

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