A to Z of funding (N)

N


Non-profit, not-for-profit

Generally taken to mean not distributing the profits to the owners of the organisation, though the term is not recognised in UK law. If an organisation distributes any profit or surplus to its members or its committee members or its shareholders, it is 'for-profit'. All charities are automatically non-profit distributing.

Non-profit organisations don't have to make a loss, or just break-even. The important point is that if they make a surplus, that surplus is used to further the objects of the organisation.

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