Nonprofit

/ˌnɑnˈprɑfɪt/ noun

Definition

An organization that operates for purposes other than making profit, typically for charitable, educational, religious, or social causes.

Etymology

Compound formed in early 20th century America from 'non-' (not) and 'profit.' The legal concept developed alongside modern tax codes, with formal nonprofit status codified in the Revenue Act of 1950.

Kelly Says

Despite the name, nonprofits can and do make money - they just can't distribute profits to owners or shareholders! In the US, the nonprofit sector employs over 12 million people and contributes more than $1 trillion annually to the economy, making it larger than many entire national economies.

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