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NPO (nonprofit organization, in the case of Estonia, MTÜ) is a voluntary association of persons whose main purpose is not connected with earning income during its economic performance. Commonly, NPOs are incorporated for socially oriented purposes and have the form of charities, universities, foundations, political parties, etc. It means that NPOs cannot share profits among their board members and pay dividends, only distribute income for the association's objectives indicated in the Articles of Association. Nevertheless, NPOs can open bank accounts, conclude contracts, and pay salaries to employees.
NPO
NPO (nonprofit organization, in the case of Estonia, MTÜ) is a voluntary association of persons whose main purpose is not connected with earning income during its economic performance. Commonly, NPOs are incorporated for socially oriented purposes and have the form of charities, universities, foundations, political parties, etc. It means that NPOs cannot share profits among their board members and pay dividends, only distribute income for the association's objectives indicated in the Articles of Association. Nevertheless, NPOs can open bank accounts, conclude contracts, and pay salaries to employees.