Quick Definition

Not-for-profit organizations are entities that do not distribute their surplus funds to owners or shareholders, but instead use them to help achieve their goals, which are often related to public benefit.

Examples

• 1A community sports club that uses all earnings to improve facilities and train local athletes.
• 2A charity dedicated to homelessness prevention, using donations to fund shelters and support services.
• 3A cultural association that organizes free art classes and exhibitions funded through grants and donations.

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