What does nonprofit mean?
A nonprofit is an organization that exists primarily to advance a mission rather than generate profit for distribution to private owners. The term is widely used in the United States and Britain for charitable, educational, scientific, religious, cultural, and public-benefit organizations. As a noun, “nonprofit” refers to the organization itself; as an adjective, it describes its activities, status, governance, or purpose, as in “nonprofit organization” or “nonprofit sector.” A nonprofit may receive donations, charge fees, employ workers, and even earn a financial surplus. Its defining feature is that such resources are generally directed toward the organization's mission rather than divided among private shareholders. The word often carries a positive connotation of public service, community benefit, or social purpose, although a nonprofit's legal status alone does not guarantee effectiveness or ethical conduct. “Non-profit” is also encountered as a spelling variant, especially in traditional British usage.
An organization that operates primarily to serve a mission rather than distribute profits to private owners.
"The local nonprofit offers emergency assistance to families affected by the storm."
The word is widely used as a count noun and is often shortened in phrases such as “a local nonprofit.”
Not intended to generate profit for distribution; organized for a mission or public benefit rather than private financial gain.
"The foundation operates as a nonprofit research institute."
This use normally appears before a noun, as in “nonprofit organization,” “nonprofit hospital,” or “nonprofit status.”
The standard plural is formed by adding -s to the noun sense of “nonprofit.”
"Several nonprofits receive grants from the community foundation."
A nonprofit may earn a surplus, but by definition it does not distribute that surplus to private owners.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does nonprofit come from?
The word combines the Latin-derived prefix non-, meaning “not,” with profit, meaning financial gain. Profit entered English through Old French from Latin profectus, a term associated with progress, benefit, or gain. The combined form nonprofit developed in English during the 19th century and came to denote both an organization organized without private profit distribution and an arrangement whose purpose is not profit. Related English words such as profitable, profitability, and profiteer continue to use the same underlying root.
Related word forms
How nonprofit is actually used
“Nonprofit” can function as either a noun or an adjective. As an adjective, it normally precedes the noun it modifies: “nonprofit organization,” “nonprofit board,” or “nonprofit services.” In general usage, nonprofit does not mean that an organization has no money or earns no surplus; it means that any surplus is generally used to support the organization's mission rather than paid to private owners. The closed form “nonprofit” is especially common in American English, while “non-profit” remains a traditional variant.
Easily confused with nonprofit
“Nonprofit” is the usual closed spelling in contemporary American English, while “non-profit” is a traditional or regional variant.
“Profit” is the financial gain earned by an enterprise, whereas a “nonprofit” is an organization whose earnings are generally reinvested in its mission rather than distributed to private owners.