What Exactly is a Non-Profit?

A nonprofit organization, or NPO, is a group that works to provide a public benefit and does not distribute its profits to private individuals. Nonprofits are often recognized as the "Third Sector" because they supplement the public and private sectors. They are dedicated to promoting a social cause or advocating for a specific standpoint, and their services often help with basic human and environmental needs. Nonprofits may assist with food, water, education, endangered species, forests, and wildlife.

Nonprofits are able to qualify for tax-exempt status from the IRS because of their mission and purpose. They are required to make their financial and operating information public so that donors can see how their contributions are being used. Nonprofits may raise money and awareness through events like galas, auctions, or charity runs. They may also receive in-kind donations of goods or services, such as office supplies, equipment, or professional services.

Nonprofits use a double bottom line model, where furthering their cause is more important than making a profit, but both are needed for the organization's sustainability. Success for nonprofits is measured based on whether they accomplish their philanthropic mission.