Definitions For NPOs, NGOs and The Third Sector
NPOs can simply be defined as a corporation that cannot operate for profit. The money earned or donated to NPO is used in pursuing the organization objectives. Most NPO organizations also seek for tax exemption. These are formal, private, not profit distributing, self-governing and voluntary organizations. (Defining the Non-Profit , Sector.Salamon M.L., Anheier. K.H.John Hopkins Comparative Nonprofit Sector) They are also referred to as corporations or an associations that conduct business for the benefit of the general public without shareholders. State laws on NPOs vary from state to state, but generally state gives tax breaks and exemptions to NPOs that are operated exclusively for either religious and charities.(The Free Dictionary by farlex) NPO is also seen as an organization that serves some public purposes and therefore enjoys a special treatment under law. Contrary to their name, it can make a profit but can't be designed primarily for profit making. (Entrepreneur. http://www.entrepreneur.com/encyclopedia/nonprofit-corporation) Business dictionary further defines NPOs as "Associations, charities, cooperative and other voluntary organizations formed to further cultural, educational, religious, professional or public service purposes. Their start up funding is provided by their members, trustees, or others who do not expect repayment and who do not share in the organization profits or losses which are retained or absorbed ." (http://www.businessdictionary.com/definition/non-profit-organization-NPO.html)
NGO is any non-profit, voluntary organisation which is organized on a local, national or international level. Task-oriented and driven by people with a general interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. Some are organized around...