A non profit or not for profit corporation is an entity which utilizes the revenue and/or income it generates to promote the non profit’s purposes, programs and activities. In contrast, a “for-profit” entity’s purpose is to distribute the profits it generates to the owners of that entity. A non profit organization may be formed, for example, for the purpose of promoting charitable, educational, religious, or scientific purposes. However, a non profit organization does not necessarily need to be charitable and can serve other functions. For example, a non profit entity may be formed to serve as a fraternal organization, a social or recreational club, a political organization, a business league or trade association, or a homeowners association, just to name some examples. Non profit organizations are usually tax exempt.