Definition of non-profit organization

A non-profit organization (NPO) is an organization that is dedicated to pursuing a particular social or charitable cause, rather than generating profit for its owners or shareholders. Non-profit organizations can be established for various purposes, such as advancing education, promoting healthcare, environmental activism, human rights advocacy, or providing assistance to disadvantaged individuals or communities. These organizations typically rely on donations, grants, and fundraising efforts to sustain their activities and fulfill their missions. The surplus funds generated by a non-profit organization are reinvested back into the organization to support its goals and objectives, rather than being distributed to individuals or stakeholders.