What Is the Purpose of Non Profit Organizations?

Non-profit organizations provide programs and services that benefit the public. Sometimes called NPOs or not-for-profit corporations, they are set up to create a venture where any and all surplus money, beyond reasonable operating expenses, will be spent to provide services and programs, typically for education, social causes, the arts and scientific research.

Background

Non profit status allows organizations to pay less or no income tax and to apply for grants from government, businesses and foundations. In the United States, Non profit organizations gain a legal status known as 501c. This status allows businesses and individuals who donate money, goods or services to these organizations to deduct their contributions from their taxable income. This tax advantage is intended to encourage wealthy individuals and corporations to invest in things that benefit society as a whole.

Educational Non Profits

Typical educational non profits include many foundations that provide scholarships, grants and fellowships. Other education-related non profits include The Career Dreams Educational Foundation (career exploration and development for students) and Computers for Youth (which provides home computers for low income students).

Health Services

Examples of NPOs in the health field include: St Jude Children's Research Hospital (treats critically ill children whether or not they are insured), Doctors without Borders (delivers emergency medical care in areas hit by natural and man-made disasters), and the Mayo Clinic (medical treatment and research).

The Arts

Many foundations exist which fund artist and arts organizations. Most museums, theatre companies, symphonies and other fine arts entities are non profit organizations. Two interesting art-related NPOs are Cool Culture (providing free arts access to children) Arts Engine Inc (supporting independent film and video producers).

Environment

Hundreds of environmental NPOs exist, including Earthshare (organizing volunteer projects and workplace giving), the Rainforest Alliance (conserving biodiversity by changing land use practices), Nature Conservancy (environmental education and purchasing land to set aside for preservation), as well as longtime environmental players like Greenpeace and the Sierra Club.

Social Issues

Giving people a chance to improve their lives, Social NPOs confront issues such as homelessness, hunger, poverty, drug and alcohol abuse and human rights. Social NPOs include Habitat for Humanity (building housing for the homeless), Grameen foundation (microfinance) KIVA (micro loans, person to person), Amnesty International (human rights protection), and the Hunger Site (using the Internet to eliminate hunger).