A not-for-profit organization, also known as a non-profit organization, is an organization that is formed for the purpose of advancing a particular social cause or advocating for a particular point of view. They do not operate for the profit or personal gain of their members or directors, but rather for the benefit of the general public or a specific group of individuals. Examples of not-for-profit organizations in the UK include charities, religious organizations, and membership organizations such as trade unions.
Not-for-profit organizations raise revenue through a variety of means, including donations, grants, and fundraising activities. They may also generate revenue through the sale of goods or services, but this is typically not their primary focus.
One key difference between not-for-profit organizations and commercial organizations is that commercial organizations are primarily concerned with making a profit, while not-for-profit organizations are not. As a result, commercial organizations often generate revenue through the sale of goods or services, while not-for-profit organizations may rely more on donations, grants, and fundraising activities to support their operations.