NPO, or the Non Profit Organization is referred to the organization where the profits or the net income from any of its transaction is not distributed to its shareholders but is rather used to help achieve the goals for which the organization was formed.
There are many purposes for which the NPO or the Non Profit organization is created. In many cases it is for a charitable reason, or for a religious purpose or with educational goals behind it. For examples, organizations like hospitals, schools, museums, places of worship, food banks, trade unions, shelter for homeless, fraternal organizations, etc. Any volunteer organization which does not partake in the profits generated by the organization can be accounted into this category. The NPOs have to be either organized as corporations or associations or as trusts.