This is a big one; it's a big topic that I'll try to simplify and clarify for the reader as much as possible. The Wikipedia Legal Definition of a nonprofit is a good place to start: a legal entity organized and operated for a collective, public or social benefit, in contrary with an entity that operates as a business aiming to generate a profit for its owners. That seems pretty clear, right? -While the basic definition of a nonprofit isn't particularly confusing or convoluted, it somehow lends itself to so many misconceptions, misinterpretations and misunderstandings. That in and of itself is part of why I wanted to blog on this topic. So, according to the above definition a nonprofit must exist to serve some positive social purpose, right? -That is right, but let's not forget that the positive impact of a nonprofit can be highly focused and concentrated on a teeny-tiny fragment of the general population. Here's an example of that: