What is a non-profit organization? Operational Objectives of Nonprofit Organizations

Tổ chức phi lợi nhuận là gì? Mục đích hoạt động của các tổ chức NPO

Non-profit organizations are widely known for their non-profit projects and action programs aimed only at creating useful values ​​for the community.

Let’s join Ms. Uptalent to find out what a non-profit organization is and some information related to these organizations through the article below to better understand!

1- What is a non-profit organization?
2- The difference between non-profit and non-profit organizations
3- What conditions must a non-profit organization meet?
4- 8 Popular Forms of Nonprofit Organizations
5- What is the goal of a non-profit organization?
6- How does a non-profit association work?
7- Some non-profit organizations nationally and in Vietnam

1- What is a non-profit organization?

1.1- Concepts

A non-profit organization is an organization created and operated for the non-profit purpose of generating profit or benefit for its members. The ultimate goal of these organizations is to bring benefits to the community and society.

In English, a non-profit organization is called a non-profit organization (NPO). NPOs can be associations, charities, social funds, religious organizations, non-governmental organizations, artistic organizations, etc.

NPO’s fields of activity are very diverse. They are often interested in developing non-profit projects in areas such as environment, social protection, charity, poverty reduction, welfare, etc. Because NPOs operate with the aim of developing public benefits. Dong, they will therefore be exempt from taxes by the Government.

1.2- Characteristics of the NPO

Compared to organizations that focus on profit-seeking, NPOs will have very unique characteristics. You can rely on these characteristics to identify the NPO.

Below are the unique features commonly found in NPOs:

– The profits from funds available or sponsored or donated will be used to carry out activities for the community.

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– NPOs can make profits in different ways. However, this money will not be used for distribution to members or investors but will be used for programs serving social benefits.

– NPO’s performance evaluation will not be based on profits. Because these organizations only focus on providing useful products and services to the community.

Non-profit organisation

2- The difference between non-profit and non-profit organizations

Apart from businesses and businesses that operate with the aim of making a profit, there are also organizations created without this objective. These organizations are often called non-profit organizations and non-profit organizations.

Because both serve the same purpose, many people often confuse them and use them interchangeably in some cases.

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In fact, non-profit and non-profit organizations are two different entities. You can clearly identify them by the following differences between them:

– First, non-profit organizations are often much larger than non-profit organizations.

– Second, non-profit organizations include charitable trust units and cooperative societies. But non-profit organizations only include associations and clubs.

– Third, a non-profit organization is a legal entity recognized by law, a non-profit organization does not have one.

3- What conditions must a non-profit organization meet?

For an organization to be recognized as an NPO, it is not simple. This organization will have to follow a specific procedure, international practices and the laws of the host country.

Here are the main conditions that an organization must meet to be recognized by the government as an NPO:

– The purpose of establishing the organization should be charity, community benefit, scientific development, education, religion, etc.

– The organization is created for the benefit of the community and not for any individual or individual.

– There is a governing body established by holding elections.

– There are laws regulating the methods of operation, operational procedures and objectives of the organization.

– Prepare documents to certify the above conditions and submit them to the tax administration to benefit from tax exemption.

What is a non-profit organization?

4- 8 Popular Forms of Nonprofit Organizations

4.1- Charitable organization

To be recognized as a charity, you must register the organization’s form from the start of its establishment as a charity.

Charitable organizations will be exempt from all state taxes. However, all profits made must be dedicated to charity.

There are many different ways to organize a charity. You can organize it as a trust, business or association.

4.2- Cooperatives

Cooperatives are often created through the commitment of many different people. They share similar ideas, cultural characteristics and regulations when pursuing goals for the common benefit of the organization, community and society.

4.3- Individual organization

This form is similar to a charitable organization. However, individual organizations have the particularity of having a specific and stable source of funding.

Individual organizations can earn income and profits by investing in or sponsoring other charitable organizations.

4.4- Non-governmental organizations

Non-governmental organizations receive funding from the state or international organizations (e.g. WHO). At the same time, they operate independently and have no connection with the government of any particular country.

4.5- Fraternal friendship organization

This form of NPO organization is established based on the similarities between the goals, beliefs, and interests of the participating members.

Similarities may be related to cultural or social interests or an interest in volunteering.

Nonprofit Capital

4.6- Mutual funds

Mutual funds are a type of financial institution. The organization’s financial resources come from participating members (usually customers). Subsequently, profits from the fund’s operations will continue to be reinvested to develop and maintain the organization.

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4.7- Chamber of Commerce

A chamber of commerce is an association made up of a group of businessmen. They come together to promote and develop trade, cooperation and investment relations.

According to Uptalent, the chamber of commerce will raise funds by collecting membership dues from member companies in different localities.

4.8- Social enterprise

The characteristic of social enterprises is that they will sell appropriate goods and services to raise funds for projects and programs intended to serve the community and society.

All profits from sales activities will be reinvested to achieve goals for the benefit of the community.

5- What is the goal of a non-profit organization?

As mentioned, the main goal of NPO, once established, is to provide specific and important values ​​to the community and society at large. They do not seek to generate profits for individuals. At the same time, they are also willing to spend large sums of money to receive the values ​​they expect.

At the same time, some NPOs want to create a healthy and nurturing environment for specific groups of individuals. They wish to become a lasting and civilized bridge between the different classes, groups and collectives of society.

Additionally, you may also come across a department or project working for non-profit purposes within the companies and companies themselves. These are often specialized departments or independent projects organized by companies with the aim of communication, community development and great values ​​for society.

Purpose of the non-profit organization

6- How does a non-profit association work?

Almost all non-profit organizations have a way of organizing and operating that is quite similar to that of businesses. They will have regulations on tasks and roles for each position, recruitment process, remuneration policy, training program, employee retention, etc.

It should be noted that cooperatives can share profits with their members, but charities cannot. However, both forms have the same organizational structure and the same mode of operation.

7- Some non-profit organizations nationally and in Vietnam

7.1- International non-profit organization

There are many NPOs operating around the world. These organizations are well known and highly trusted.

Some famous NPO names that most people know include:

– Wikipedia (Open Encyclopedia).

– International Conservation (CI).

– Green Peace (Greenpeace).

– Goethe-Institut (Goethe-Institut).

– Quỹ Mozilla (Mozilla Foundation).

– Mayo Clinic/Foundation.

– Red Cross.

– Salvation Army.

– United Way.

Non-profit organization in Vietnam

7.2- Non-profit organizations in Vietnam

Some reputable non-profit organizations operating in Vietnam include:

– AIESEC – An organization promoting cultural exchanges managed by young people who are studying in universities, colleges or who have just graduated for a few years.

– VPV – Organization of Volunteers for Peace in Vietnam.

– SJ Vietnam – Solidarity organization for Vietnamese youth.

– GMVN – Vietnamese Dream Organization.

– VEO – Voluntary Educational Organization.

– HOPE volunteer club.

– Save the children Vietnam.

– Vietnamese Red Cross.


The existence of non-profit organizations and the values ​​they bring to society attract the attention of many people, especially young people.

Not only are they interested in learning, but today’s youth are also very willing to participate in non-profit programs and projects or become members of NPOs to bring good values ​​to society and to the copper community.

Hopefully the above shares from Ms. Uptalent will be helpful to those who want to better understand what a non-profit organization is or to young people who want to contribute to non-profit activities. Good luck!

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