Non-profit organizations: what are they and how do they work?

Today it is not uncommon to hear about non-profit organizations or associations .

The expression refers immediately to the term profit ; but is it really possible to think that someone works and is committed without gaining the ultimate goal ?

Not only is it possible but it happens often and in various forms.

In Italy, today, non-profit companies have increased by 28% compared to 2001 , so much so as to induce a real reform of the third sector this year .

Therefore, in recent years, the non-profit sector has undergone a strong impulse which must, however, necessarily correspond to a qualitative growth of its services.

What are non-profit organizations?
It is not easy to provide an exhaustive definition of what non-profit organizations are.

First of all, it should be specified that non-profit organizations are part of the Third sector , that is, of that sector to which institutions and organizations belong, which are located in an intermediate position between the market and the State.

The not-for-profit name has Anglo-American origins and derives from the union of ” non ” with the name ” profit ” and is therefore used to indicate those organizations that operate without profit , that is profit and that are characterized by having as their objective the common good .

This does not mean that the entity does not generate any financial gain in any way: even the non-profit association can produce an asset, but the substantial difference with the other entities is that this gain does not translate into profit, that is , it is not distributed among the members of the association itself.

Therefore, the money raised is set aside and reinvested to finance the activities of the same body, to achieve its primary objectives .

Most of these are entities that pursue altruistic intentions and are dedicated to activities of public utility and relevant in various sectors such as cultural, scientific, welfare, research or environmental.

How many types of non-profit organizations exist?
It must be specified that different types of non-profit associations can be traced . We will try to clarify, taking into consideration two of the main subdivisions.