Not-for-profit

From PhilanthropyWiki

Not-for-profit Definition

A not-for-profit organisation is an organisation whose primary objective is something other than the generation of profit, and which does not distribute any profit to the organisation's members. A not-for-profit organisation may have a "profit" - or surplus - left over after operating costs, but whereas a for-profit business would distribute that profit to its owners, shareholders or members, a not-for-profit must use the surplus to further the purpose of the organisation and its activities.

Not-for-profit organisations are entitled to pay salaries and to engage in activities which will earn money such as charging for services, selling or leasing property, and investing in shares.

Not-for-profit organisations range from sporting clubs and hobby groups to community centres, neighbourhood houses, traditional charities, disability support groups, aged care homes, etc. There are over 700,000 nonprofit organisations in Australia.

For further information:

• Fact Sheet: What Does Not-For-Profit Mean? (PilchConnect)
• Is Your Organisation Non-Profit? (Australian Taxation Office)