Nonprofit organization (abbreviated as NPO) is neither a legal nor technical definition but generally refers to an organization an that uses surplus revenues to achieve its goals rather than to distribute them as profit or dividends. States in the US refer to the IRS designation conferred under United States Internal Revenue Code Section 501(c), when the IRS deems an organization eligible.
While not-for-profit organizations are permitted to generate surplus revenues they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or boards. Many have paid staff including management, while others employ unpaid volunteers and even executives who work without compensation.