A non-profit organization (NPO, also known as a non-business entity) is an organization whose purposes are other than making a profit. A non-profit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view. In economic terms, a non-profit 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 distribution constraint. The decision to adopt a non-profit legal structure is one that will often have taxation implications, particularly where the non-profit seeks income tax exemption, charitable status and so on.

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