A nonprofit organization (NPO) or non-profit organization is a legal entity organized and operated for a collective, public, or social benefit as opposed to an entity that operates as a business with the goal of making a profit for its owners. It is also referred to as a non-business entity, not-for-profit organization, or nonprofit institution. The non-distribution constraint applies to nonprofits, which means that any surplus funds must be used to further their mission rather than being distributed to other parties.