What is the definition of a nonprofit organization?
A nonprofit organization is a type of organization that is created to operate with an intention other than making a profit. This means that the primary purpose of the organization is to provide benefits to members of the public, instead of making money for its owners. In Washington, nonprofit organizations are governed by a set of laws set forth by the State of Washington. According to these laws, nonprofit organizations must be formed for charitable, educational, religious, literary, scientific, or artistic purposes; and must not be organized for the financial gain of its members or directors. Additionally, nonprofit organizations must also be organized for a public purpose, meaning to benefit the people of the state of Washington. Moreover, nonprofit organizations cannot distribute their profits to shareholders in the form of dividends, but rather any profits from operations must be reinvested back into the organization to further its mission.
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