NFP (Not-for-Profit)

A not-for-profit (NFP) organization is entity dedicated to serving a public or community benefit rather than generating profit for owners or shareholders. Any income it earns is reinvested into its mission, such as education, health, or charity work, rather than distributed as profits. NFPs rely heavily on donations, grants, and volunteers to operate. They are often tax-exempt because their primary purpose is to serve the public interest. Examples include charities, museums, and churches. Their focus is on making a positive impact, not on maximizing financial gain.