Not-For-Profit

Type of incorporated organization in which no stockholder or trustee shares in profits or losses and which usually exists to accomplish some charitable, humanitarian, or educational purpose; also called nonprofit. Such groups are exempt from corporate income taxes but are subject to other taxes on income-producing property or enterprises. Donations to these groups are usually tax deductible for the donor. Some examples are hospitals, colleges and universities, foundations, and such familiar groups as the Red Cross and Girl Scouts.

An incorporated organization chartered for other than profit-making activities. Most such organizations are engaged in charitable, educational, or other civic or humanitarian activities although they are not restricted to such activities. See charity.