A non-profit organization can have several definitions depending on the perspective of the people discussing the matter and the context of the discussion. To the layman, the term generally means a charitable institution or perhaps a church, or an organization which provides assistance to the community which isn’t provided by the government.
To a tax accountant, the term refers to a legal loophole which provides deductions and changes the amount of taxes owed in relation to profits earned. Arguably the best explanation is that a person or people realize how important the community is to themselves and their business interests, and with the best of intent want to return the support the community has provided the organization with a show of appreciation for their continued business.
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