Nonprofit institutions are organizations that operate for purposes other than making a profit. They focus on social, educational, charitable, or community goals and often rely on donations, grants, and volunteers to support their activities. Examples include charities, foundations, and educational institutions. These organizations are typically tax-exempt, meaning they do not pay income tax on the money they receive. Nonprofits must reinvest any surplus funds back into their programs and services, ensuring that their primary mission remains focused on benefiting the community rather than generating profit for owners or shareholders.