Non-Profit Organisation Definition
A non-profit organisation (NPO) is a type of organisation that uses its income to support its goals and objectives, rather than distributing it as profit or dividends. NPOs are usually registered as charities, trusts, or companies limited by guarantee.
The main purpose of an NPO is to benefit the public or community, rather than private individuals or shareholders. NPOs are often set up to tackle social issues or problems that profit-driven businesses are not motivated to address.
NPOs typically rely on funding from philanthropic donations, government grants, and membership fees. They may also generate income from trading activities, such as selling products or services.
There are many different types of NPOs, including charities, social enterprises, cooperatives, and mutual societies. Each type has its own legal structure and rules governing how it can operate.
