<P> A nonprofit organization, also known as a non-business entity, is an organization that has been formed by a group of people in order "to pursue a common not - for - profit goal", that is, to pursue a stated goal without the intention of distributing excess revenue to members or leaders . A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view . In economic terms, a nonprofit 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 non-distribution constraint . The decision to adopt a nonprofit legal structure is one that will often have taxation implications, particularly where the nonprofit seeks income tax exemption or charitable status . </P> <P> The terms nonprofit and not - for - profit are not consistently differentiated across jurisdictions . In layman's terms, they are usually equivalent in concept, although in various jurisdictions there are accounting and legal differences . </P>

Non profit organizations are commonly known for supporting