A nonprofit organization (NPO, also known as a non-business entity) is an organization whose purposes are other than making a profit. A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view. In economic terms, a nonprofit organization uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders (or equivalents) as profit or dividends. This is known as the distribution constraint. The decision to adopt a nonprofit legal structure is one that will often have taxation implications, particularly where the nonprofit seeks income tax exemption, charitable status and so on. COUNT 8
QSN1 What is the purpose of an NPO? ANS1 A nonprofit organization (NPO, also known as a non-business entity) is an organization whose purposes are other than making a profit. QSN2 What does an NPO do with it's surplus income? ANS2 In economic terms, a nonprofit organization uses its surplus revenues to further achieve its purpose or mission QSN3 What is the constraint's upon an NPO's financial distributions called? ANS3 the distribution constraint QSN4 What is the definition of a non-profit organization? ANS4 purposes are other than making a profit QSN5 What is an NPO also known as? ANS5 non-business entity QSN6 What is the purpose of an NPO? ANS6 furthering a particular social cause or advocating for a particular point of view QSN7 What does a non-profit do with the money it takes in, instead of using it for a profit? ANS7 further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders (or equivalents) as profit QSN8 What is it called when a non-profit uses it's money as it should? ANS8 distribution constraint