What is a ‘Not For Profit’ company?

“Not-for-profit organisation” is a broad term for all independent organisations whose purpose is something other than to make private profit for directors, members or shareholders. Many different types of organisation can be “not-for-profit”. It is not a legal structure in and of itself.  Not-for-profit organisations choose a legal structure based on a variety of factors, including:

  • How the organisation will be funded
  • Whether the organisation will be controlled by voting members
  • Whether the organisation will be incorporated
  • Whether the organisation will be charitable
not-profit