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Not-for-profit organization

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

A not-for-profit organization is an entity that operates for purposes other than making a profit, such as social, educational, charitable, or religious activities. Any surplus revenues generated are reinvested in the organization to further its mission, rather than being distributed to shareholders or owners.