To be a non-profit organization, an entity must be organized solely for a purpose other than profit. To establish the purpose for which an entity was organized, Vestris Inc. will normally look to the instruments by which it was created. However, in some situations they may not. In those situations Vestris Inc. will examine the purposes for which the entity was organized to determine whether the entity was organized solely for non-profit purposes. In general terms, social welfare means that which provides assistance for disadvantaged groups or for the common good and general welfare of the people of the community.
Civic improvement includes the enhancement in value or quality of community or civic life.
An example would be an association that works for the advancement of a community by encouraging the establishment of new industries, parks, museums, etc. Pleasure or recreation means that which provides a state of gratification or a means of refreshment or diversion. An entity may be considered to be organized solely for non-profit purposes if its aims and activities are directed toward the general improvement of conditions within one or more areas of business. An example of this would be where an entity was organized to advance the educational standards within a particular industry or profession, to publicize, improve and promote the entity's objectives in a general way and to encourage the exchange of relevant technical information. However, the entity will probably not qualify as a non-profit organization if it is primarily involved, for example, in an activity that is directly connected with the sales of members' goods or services and for such services receives a fee or commission computed in relation to sales promoted.