Non-profit organization

A non-profit organization (sometimes abbreviated to "not-for-profit," "non-profit" or "NPO") is an organization whose primary objective is to support some issue or matter of private interest or public concern for non-commercial purposes. Non-profits may be involved in an innummerable range of areas relating to the arts, charities, education, politics, religion, research, or some other endeavour.

Status

In most countries, non-profit organizations may apply for a tax exempt status; this means that financial donors may claim back any income taxes paid on money donated. A primary difference between a non-profit and a for-profit corporation is that a non-profit does not issue dividends, and may not enrich its directors. However, like for-profit corporations, non-profits may still have employees and can compensate their directors within reasonable bounds. Some critics of corporations argue that when they donate instead of paying taxes, the companies whitewash their reputations, sometimes paying even less than they would in taxes and benefitting in terms of marketing and public relations purposes. In some countries, e.g. in Europe, the idea of deductible donations is not endorsed as it is considered to violate the popular sovereignity. In a democracy, the people, i.e. the parliament, should be able to decide where the tax money goes. Donors indirectly decide on the use of their taxes which should be the privilege of parliament, not of individuals. In countries where donations are not tax-deductible, state usually assumes a much larger role in supporting non-profit organizations.

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