Nonprofit organizations are institutions that are established in order to raise money for educational, religious or scientific purposes. These organizations are run by a group of people who come together with an ad hoc purpose, more like volunteers than employees. As an example, an organization that is established for disaster relief or literacy can be classified as a nonprofit organization.

Nonprofits are also called foundations. Some foundations raise money for other nonprofit organizations. As an example, the UN funds UNESCO and UNICEF. A nonprofit is made up of a staff, board members and trustees.

Nonprofit organizations invite volunteers from all over the world to work for them. People who may feel strongly about some social issue may also work for nonprofits.

Nonprofit organizations may not generate profits, yet they do need revenues to sustain them. This revenue is largely raised through donations, grants and special events. Donations are tax-deductible and grants are awarded from government and private resources. Nonprofits are expected to spend all their revenues on social interests, after deducting the necessary expenses to maintain the organization.

Both federal and state governments provide tax exemptions to nonprofit organizations if the genuineness of their mission is well understood. For this, an organization must apply for a nonprofit status and clearly show that a portion of its assets is donated to charity every year. This portion is typically 5% of the assets.

Some of the largest nonprofit organizations are the Bill and Melinda Gates Foundation, pioneered by William H. Gates, inventor of the Windows operating system. This foundation has assets of $27 billion and donates about $1 billion every year. There is also AmeriCorps, The Wikimedia Foundation, The Red Cross Society, UNICEF, UNESCO, Better Business Bureau and CRY.