A Nonprofit Organization (NPO), also known as a non-profit entity, not-for-profit organization, or nonprofit institution, is a legal body that is founded and maintained for a collective, public, or social purpose, as opposed to a business that aims to profit its owners. The non-distribution limitation applies to nonprofits: any surplus funds must be invested in the organization's mission rather than distributed to private parties. Most political groups, schools, business associations, churches, social clubs, and consumer cooperatives are all nonprofit organizations. Nonprofit organizations typically seek government approval to be tax-exempt, and some may be eligible to receive tax-deductible contributions, but an organization can incorporate as a nonprofit without obtaining tax-exempt status. Accountability, trustworthiness, honesty, and transparency with everyone who has devoted time, money, and faith in the organization are essential characteristics of nonprofits.
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