Not-for-Profit Definition

A not-for-profit is an organization that offers goods or services to meet certain goals but not to earn a profit.

Non-for-Profit Expanded Definition

Not-for-profit organizations operate with the expectation of earning no profit. Any profit earned by a not-for-profit organization is either channeled back into the organization or invested into a cause they support.

They can offer goods and services for little or no profit. Usually, these organizations use volunteers, not paid employees. Not-for-profit organizations often receive IRS tax-exempt status.

Related Article

What Is a Not-for-Profit Organization?

Last Updated By

Christan Neff | Apr 17, 2023

Check out Our Accounting Software

See a Demo

Back to Top