A non-profit organization (NPO), sometimes known as the non-gain entity, a not-for-profit organization, or a non-profit institution, is a legal entity created and operated for the collective, public, or social good, contrasted with a company that seeks profit for its shareholders. Charitable organizations are subject to the non-distribution limitation that requires any surplus cash to be spent on the organization's goal rather than dispersed to third parties. Most political groups, schools, business associations, churches, social clubs, and consumer cooperatives are non-profit organizations. Non-profit organizations often seek government approval to be tax-exempt, and some may be eligible to accept tax-deductible contributions. Still, an organization can establish itself as a non-profit organization without obtaining tax-exempt status. Accountability, integrity, honesty, and transparency to everyone who has committed time, money, and confidence in the organization are essential for non-profits. Donors, funders, volunteers, program users, and the general public hold non-profit organizations responsible. Public confidence determines the amount of money that a non-profit organization may raise when funding its operations through donations.  The more the concentration on a non-profit 's purpose, the greater the public's trust in it. The group will be able to raise more funds as a result of this. The activities that a non-profit engages in can increase public trust in organizations by demonstrating how ethical the standards and procedures are. Private donations and government funding fluctuate year to year, while government grants have shrunk. Many charity organizations have diversified their funding sources since funding sources shift from year to year.  Non-profit s are sometimes misunderstood as being entirely operated by volunteers. Most organizations have paid employees, with volunteers doing the non-profit 's activities under the guidance of the paid employees. Non-profit s must strike a balance between the money spent on wages and the money spent on providing services to the non-profit 's beneficiaries. Regulatory scrutiny may be applied to organizations whose compensation costs are excessively high compared to their program costs.