<P> A nonprofit organization , also known as a non-business entity , is an organization that has been formed by a group of people in order `` to pursue a common not - for - profit goal '' , that is , to pursue a stated goal without the intention of distributing excess revenue to members or leaders . A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view . In economic terms , a nonprofit organization uses its surplus revenues to further achieve its purpose or mission , rather than distributing its surplus income to the organization 's shareholders ( or equivalents ) as profit or dividends . This is known as the non-distribution constraint . The decision to adopt a nonprofit legal structure is one that will often have taxation implications , particularly where the nonprofit seeks income tax exemption or charitable status . </P>
<P> A nonprofit organization , also known as a non-business entity , is an organization that has been formed by a group of people in order `` to pursue a common not - for - profit goal '' , that is , to pursue a stated goal without the intention of distributing excess revenue to members or leaders . A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view . In economic terms , a nonprofit organization uses its surplus revenues to further achieve its purpose or mission , rather than distributing its surplus income to the organization 's shareholders ( or equivalents ) as profit or dividends . This is known as the non-distribution constraint . The decision to adopt a nonprofit legal structure is one that will often have taxation implications , particularly where the nonprofit seeks income tax exemption or charitable status . </P>
non profit organizations are commonly known for supporting
non profit organizations are commonly known for supporting
a stated goal without the intention of distributing excess revenue to members or leaders
a stated goal without the intention of distributing excess revenue to members or leaders