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A nonprofit organization (abbreviated NPO, also not-for-profit) is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples of NPOs include charities (i.e. charitable organizations) , trade unions, and public arts organizations. Most governments and government agencies meet this definition,

but in most countries they are considered a separate type of organization and not counted as NPOs.hereas for-profit corporations exist to earn and distribute taxable business earnings to shareholders, the nonprofit corporation exists solely to provide programs and services that are of public benefit. Often these programs and services are not otherwise provided by local, state, or federal entities.

Earnings may not benefit individuals or stake-holders. Nonprofit organizations may put substantial funds into hiring

While they are able to earn a profit, more accurately called a surplus, such earnings must be retained by the organization for its future provision of programs and services.