What is a Nonprofit Corporation?

What is a Nonprofit Corporation?

We understand that the nature of a corporation is to generate profits through some business activity in order to distribute those profits to shareholders. By contrast, a “nonprofit” corporation generally exists in order to perform some type of public service or social cause. Money generated through fund raising activities, grants, donations, retail sales or other business activities are used to further the qualified charitable goals of the organization rather than to generate profit for distribution to shareholders.