A non-profit is used to describe non-governmental organization or institutions that operate under the 501 (c) of the tax code. Non-profit that fall under the 501 (C )(3) which are tax exempt and they do not pay for Sale taxes are known as charities.  Using the definition that was provided by the professor on Wednesday, “A non-profit” is a cooperation that exists for a purpose other than distant of profits to its shareholders.” Although non-profits are not motivated to make a profit, organizations can produce revenue that can lead to profits. Non-profits use its revenue for the social cause while for-profit-organization distributes the revenues to shareholders and owners and executives. As a result, the meaning of non-profits goes deeper than its technical definition.