Definition of Not-for-Profit | Organizations Without Goal to Turn Profit

Accounting Definitions

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Not-for-Profit Definition

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 is 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? | Patriot Software

Last Updated By

Christan Neff | Apr 17, 2023

Back to Top