non-profit organization

Article

July 6, 2022

A non-profit organization (OSAL), also called a "non-profit entity" (ESAL), is an entity whose purpose is not the pursuit of an economic benefit but mainly pursues a social, altruistic, humanitarian, artistic or community. These types of institutions are generally financed thanks to grants and donations from individuals, companies, and institutions and organizations of all kinds, and in some cases (although not in all) occasional or regular state aid is also received (in the form of of subsidies, usufruct of farms, tax or customs exemptions, etc).[1][2]​ From the legal point of view, the most frequent is that they are organized as an association, although there are also those that operate as a foundation, mutual society, or cooperative (cooperatives may or may not be for-profit).[3] In general, , the economic surplus from the activity of this type of institution, if any, is reinvested in its entirety in social work or in the development of the institution itself, or eventually remains (in whole or in part) as a reserve for the following year . Non-profit or non-profit organizations are usually non-governmental organizations (NGOs),[4] particularly when their scope of action exceeds the borders of a certain country. The denomination non-profit organization (in English, nonprofit organization or not-for-profit organization) is usually used in countries of Anglo-Saxon influence (United Kingdom, United States, Australia).[5] These are confirmed by one or more partners, but their constitution is not commercial, normally it would be what in Mexico are known as civil societies, civil associations, civil society organizations. (as in the case of civil association Grupo two change[ 6]​). This type of organization basically works for the progress, development or common good of society, with a focus on certain groups or people with special needs or generally vulnerable, such as children, the elderly, delinquent or problematic groups, youth without access to education or work, or the orientation is aimed at covering other aspects of society in which they can have positive effects of some kind (for example ecology, environment, endangered species, advances in science , improvement of education, etc.). The organizational makeup of a foundation can be very similar to that of a commercial company,[7] and although it can be managed by salaried people, in many cases there are volunteer programs to support social purposes with time or money. . In general terms and in one way or another, volunteering is usually associated with this type of non-profit institutions. In short, a non-profit association is a group of at least two or three people, who decide to pool economic and material resources, in order to carry out an activity whose main objective is not personal enrichment. The disinterested nature of the activity prevents the distribution of benefits to associates, even in the event of dissolution, although it does not necessarily imply that the activity is non-commercial, or that it has to be loss-making. The object of the association may well be commercial (for example, distribution of retail products, distribution of products arising from fair trade, etc. On the other hand, the profits obtained may be reinvested in the activity itself for the purposes of better develop it). The difference between a non-profit association and a non-profit organization is minimal or null, although sometimes they are distinguished by the former being a group of people, and the latter a group of institutions.

Definition

An association of