What is a nonprofit corporation?

  • A nonprofit corporation is an organization or company that gains money through sales and keeps 100% of the profit. Income and any surplus funds are not distributed to owners or shareholder, but are kept to be used in the company's activities.
  • A nonprofit corporation is one which exists to fulfill a charitable need in society. Nonprofits use money gained from donations and fund raising activities to help those in need or to support education and scientific research, fund advances in health care, promote conservation and responsible citizenship, protect animals and other worthwhile endeavors. Nonprofit corporations are subject to Internal Revenue Code 501(c)3, and most of the profits they generate are exempt from income taxes. Generally donations to nonprofits are tax deductible.
  • Non-profit organizations include charities, trade unions, and public foundations.