Organizations that operate for purposes other than generating profit, typically for charitable, educational, or social causes. Also called non-profit organizations or NGOs.
American English compound formed from 'non-' (not) plus 'profit', emerging in the mid-20th century as the modern charitable sector developed. The term distinguishes these organizations from for-profit businesses in legal and tax contexts.
The term 'nonprofit' is somewhat misleading because these organizations can and often do generate surpluses - they just can't distribute profits to owners or shareholders. This linguistic quirk reflects the challenge of naming organizations by what they don't do rather than what they do accomplish.
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