A not-for-profit organization can be defined as an organization that does not blend out funds through profits. Instead, it supplies donations it receives from various sources to meet its objectives and goals. To stay up running and function efficiently, a not-for-profit organization depends solely upon donations. Most of these organizations are tax-exempt, i.e., they are not subjected to most of the taxes. These types of organizations are basically formed on the grounds of religion, education, public service, or any particular cause.