Non-Profit Corporations

While not-for-profit corporations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans.  Designation as a nonprofit does not mean that the organization does not intend to make a profit, but rather that the organization has no owners and that the funds realized in the operation of the organization will not be used to benefit any owners. The extent to which a non-profit can generate surplus revenues may be constrained or the use of surplus revenues may be restricted.

Most states have laws written that allow for the formation of a non-profit corporation.