What is not-for-profit?
Not-for-profit or non-profit organisations operate in many areas of the community to improve the quality of life and social economy.
The areas not-for-profit or non-profit organisations operate in include church schools, churches, community child care centres, cultural societies, environmental protection societies, neighbourhood associations, public museums and libraries, scholarship funds, scientific societies, scouts, sports clubs, surf lifesaving clubs and traditional service clubs.
The Australian Taxation Office uses the terms non-profit and non-profit company and defines them precisely for taxation purposes in a special non-profit section on the Australian Taxation Office website. Officers and anyone involved or responsible for the administration of such an organisation or company, whether it is known or referred to as a not-for-profit or non-profit, should seek suitably qualified professional advice or consult the Australian Taxation Office.
A not-for-profit organisation or company may make a profit but not for the direct or indirect gain of individual officers or members of the not-for-profit or non-profit organisation or company at any stage including being wound up.
Profit from a not-for-profit or non-profit organisation or company must be used for its documented constitutional community purpose.
In every day language, including government and professional use, the terms not for profit, not-for-profit, not-for-profit organisation (sometimes spelt with capitals; Not-For-Profit Organisation and referred to with the acronym NPO), not-for-profit company, non-profit organisation, and non-profit company are used interchangeably.