A nonprofit organisation (NPO), also known as a non-profit entity, not-for-profit organisation, or nonprofit institution, is a legal entity that is organised and operated for the benefit of the general public, the public good, or the welfare of the community, as opposed to a legal entity that operates as a business with the goal of making a profit for its owners. The non-distribution restriction applies to nonprofit organisations, which means that any profits that exceed expenditures must be dedicated to the organization's mission rather than being distributed to private parties. Nonprofit organisations include a diverse range of entities such as political groups, schools, business organisations, churches, social clubs, and consumer cooperatives, to name a few examples. Nonprofit organisations may apply for tax-exempt status from government agencies, and some may be eligible to accept tax-deductible donations. However, an organisation can incorporate as a nonprofit organisation without first obtaining tax-exempt status from the government.
Accountability, integrity, honesty, and transparency to everyone who has committed their time, money, and confidence in the organisation are the most important characteristics of nonprofit organisations. Funders, founders, volunteers, programme participants, and the general public are all held responsible by non-profit organisations. In the case of a nonprofit organisation that tries to generate funds to support its operations via contributions, the level of public confidence has a role in the quantity of money that the organisation is able to raise. The greater the degree to which charities concentrate on their purpose, the greater the level of public trust in them. As a consequence, the organisation will get a larger sum of money. The activities that a charity engages in, as well as the ethical standards and procedures that it adheres to, may all contribute to increasing the public's trust in NGOs.