A nonprofit organization (NPO, also known as a non-business entity) is an organization whose purposes are other than making a profit. 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 <answer>further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders (or equivalents) as profit</answer> or dividends. This is known as the 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, charitable status and so on.
What does a non-profit do with the money it takes in, instead of using it for a profit?
further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders (or equivalents) as profit