Not-for-profit

"Not-for-profit" essentially means that the accredited educational institution (or other similar organization that has a benevolent purpose) neither carries out its activities for profit nor provides returns of its surplus, if any, to the benefit of its stakeholders, officers or directors. In other words, any excess monies that remain after the payment of the expenses of the organization (including operating expenses and salaries) must be spent in furtherance of the benevolent purpose for which the organization was established and must not be distributed for the benefit of those who may run the organization.

If you are uncertain whether your organization is not-for-profit, you should consult with your financial administrators who would be familiar with the detailed provisions under the Internal Revenue Code (US) or the Income Tax Act (Canada) that govern this status.