NPO
NPO is the acronym for Non-Profit Organization.
Non-Profit Organization
An entity that operates for purposes other than generating profit for its owners or shareholders. These organizations are typically dedicated to furthering a particular social cause or advocating for a specific point of view. Key characteristics of NPOs include:
- Mission-driven: They focus on achieving a specific charitable, educational, religious, or public service mission.
- Tax-exempt status: In many countries, including the United States, NPOs may qualify for tax-exempt status if they meet certain government requirements.
- Reinvestment of surplus funds: Any surplus revenue generated is reinvested into the organization to further its mission rather than being distributed to owners or shareholders.
- Governance: NPOs are often governed by a board of directors or trustees who volunteer their time and expertise to guide the organization’s strategy and ensure it stays true to its mission.
Examples of NPOs include charitable organizations, universities, hospitals, museums, and religious organizations. These organizations often rely on grants, donations, and fundraising events to support their operations and initiatives. Well-known NPOs include the American Red Cross, United Way, and Habitat for Humanity.
- Abbreviation: NPO
