Understanding the Nonprofit Model

This lesson introduces the nonprofit model as a distinct way of organizing people, money, authority, and public trust around a mission. It explains what makes a nonprofit different from a business or informal community project, why tax-exempt status matters, and how nonprofit leaders balance mission, accountability, financial sustainability, and legal limits.

By the end of the lesson, learners should be able to describe the core features of a nonprofit organization, explain the meaning of the non-distribution constraint, distinguish mission from methods, identify common nonprofit revenue sources, and recognize why governance and public benefit are central to the model.