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A Nonprofit Corporation is an organization whose purpose is something other than making a profit. A Nonprofit Corporation donates its revenue to achieve a specific goal that benefits the public instead of distributing it to shareholders. Being a nonprofit does not mean the organization will not make a profit. Nonprofits can make money but all of the money must go back to the organization by paying employee salaries, administrative expenses, and other overhead costs. No one person or group owns a nonprofit. While anyone can incorporate as a nonprofit, only those who pass the stringent standards set forth by the government can achieve tax exempt status.

Nonprofit Corporations are established for a specific noncommercial purpose, which usually includes churches, schools and universities, hospitals, museums, and shelters. There are four main types of nonprofits and each contains the ability to achieve tax exempt status despite their slightly different goals and corporate structure. They include:

 Public Charities: Typically, a charity provides low cost or free services to the public using funds received from the public. Funds can be obtained through private donations or fundraising events.

 Social Advocacy Organizations: This type of group is member based and sets out to achieve specific goals without achieving a profit. Funds are generated through member dues.

 Foundations: This type of organization works to better the community, whether contributing financially or as local charities holding events to benefit residents. Funds usually come from for-profit companies.

 Trade and Professional Organizations: People in the same organization can benefit from the activities of this type of nonprofit. Funds are primarily obtained through membership dues.