Legal Definitions - nonprofit association

A nonprofit association is a formal group of individuals or organizations that unite for a common purpose other than generating profit for its members or owners. Instead, any surplus revenue generated by the association is reinvested directly into its mission and activities. These associations typically pursue social, charitable, educational, religious, scientific, or professional goals, and they often seek specific legal status (such as tax-exempt status) to reflect their public benefit orientation.

Here are some examples illustrating a nonprofit association:

• Imagine a group of local residents who form the "Riverbend Community Gardeners" association. Their purpose is to establish and maintain a shared community garden, organize workshops on sustainable gardening practices, and donate excess produce to local food banks. They collect small membership fees to cover the cost of tools, seeds, and water, but no individual member receives a share of any "profit."

  This is a nonprofit association because its members are united by a common social and environmental goal (community gardening and food sharing), and any funds collected are used exclusively to further that mission, not to enrich individual members.

• Consider the "National Literacy Advocates," an organization founded by educators and concerned citizens. Its mission is to promote literacy across the country by developing educational programs, providing free books to underserved communities, and lobbying for policies that support reading initiatives. They raise funds through grants, donations, and fundraising events.

  This organization operates as a nonprofit association because its collective efforts are focused on a public educational mission (promoting literacy) rather than financial gain for its founders or staff. All funds raised are dedicated to literacy programs, book distribution, and advocacy, reinforcing its non-profit nature.

• Think of the "Association of Independent Filmmakers," a professional body whose members are filmmakers, writers, and producers. Its purpose is to provide networking opportunities, offer workshops on filmmaking techniques, advocate for independent cinema, and host an annual film festival. Members pay annual dues to support these activities.

  This is a nonprofit association because its primary aim is to advance the professional development and artistic expression of its members and the independent film industry as a whole, not to distribute profits to individual members. Membership fees and festival revenues are used to fund educational programs, industry advocacy, and operational costs, all in service of its professional and artistic mission.