The terms "not-for-profit," "nonprofit," and even "nonbusiness" have been used to describe organizations that have one basic characteristic in common: Their primary purpose is related to social objectives, not to profit. These organizations may also have other common characteristics, such as nonprofit tax status, an appointed board, and for some, oversight of their operations by a governmental agency. Examples of such not-for-profits (NFPs) include libraries, museums, performing arts organizations, zoological and botanical societies, trade associations, unions, professional associations, fraternal organizations, private and community foundations, voluntary health and welfare organizations, social and country clubs, religious organizations, and public broadcasting stations.

State and local governments are not considered to be part of this group, although the accounting practices for some NFPs may be the same as those used by state and local governments as a number of NFPs are part of a state or local government.

Business Management Objectives