Not For Profit Organization

Definition

Not For Profit Organization. An organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization's owners (directors, investors, or equivalents) as profit or dividends

In the US, a nonprofit organization is an association that explicitly is not required to pay taxes on its income. Such organizations are qualified for this exemption due to their socially desirable objective (e.g. hospitals, charitable organizations, etc., or because they meet some set of requirements as determined by the US Internal Revenue Service.

Synonyms

• Non-Profit Organization

See Also

• Barron's Dictionary of Business and Economics Terms, Fifth Edition, 2012
• https://en.wikipedia.org/wiki/Nonprofit_organization

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.