A nonprofit is an organization that exists mainly to address a social or public issue – not to earn profits for its owners or stakeholders. Sometimes, nonprofits are called charitable organizations or charities.

A nonprofit can pay its employees reasonable salaries, but all the money it brings in from grants, fundraising, or other activities is supposed to be used for charitable work. Nonprofits are exempt from paying many taxes that for-profit organizations (businesses) have to pay.

Tags: charity, fundraising, nonprofit