What is a Non-Profit Organization?

Answer:
A non-profit or not for profit organization

is an organization that exists for non-commercial purposes. Sometimes referred to as charitable organizations, non-profits typically exist to provide assistance to others or to support issues of either private or public concern.

Non-profits may accept donations and engage in other activities to generate revenue to fund operations and activities. However, none of the income may be passed along to Directors or Officers.

Some non-profits have tax-exempt status, which means that the organizations themselves do not have to pay income tax and that, in many cases, contributions to the organization are tax deductible for individual donors. In order to attain tax-exempt status, US organizations typically must successfully apply for 501(c)3 status with the Internal Revenue Service (IRS).

Many schools, hospitals, volunteer-based organizations, professional organizations, community foundations, and arts organizations are chartered as non-profit organizations.