Nonprofit Organisation (NPO)
A nonprofit or not-for-profit organisation is an non-legal umbrella term describing organisations that exist for reasons other than to make profits for shareholders or directors. They include charities as well as social enterprises, community organisations, community benefit societies and non-charitable housing associations. In the UK, charities benefit from tax advantages not available to organisations not classified as charities, but charities must be registered with and meet the specific requirements of the Charities Commission. Nonprofit organisations can operate like profit-making enterprises but proceeds of sales are reinvested or recycled to social or community projects such that they make no profit.