Nonprofit organizations—referred to as NPOs—are private organizations that are not primarily focused on generating profit but rather fulfill other purposes. They operate in various societal sectors, including social and health services, arts, culture, recreation, sports, disaster relief, politics, advocacy, environmental protection, and more. In Austria (and many other countries), there is no specific legal form designated for NPOs; they can take the form of associations, foundations, limited liability companies (GmbHs), cooperatives, and even (in rare cases) stock corporations, provided they meet certain criteria: NPOs are non-state, i.e., private organizations that cannot distribute profits or surpluses to owners or members. In principle, they can generate profits, but these cannot be distributed. The use of profits is tied to a specific organizational purpose.

NPOs are characterized by a certain degree of "voluntariness," such as through volunteer work, memberships, or donations. This provides NPOs with unique forms of resources that are financially significant—this is important because NPOs often find it more challenging to access certain other forms of financing.

On the other hand, NPOs engage volunteers, members, and donations, which facilitate various forms of participation that are crucial for conveying their concerns within society. Nonprofit organizations maintain a minimum level of formal organization and self-governance or decision-making autonomy—this criterion primarily aims to distinguish them from organizations that, while having a private legal form, are subject to state institutions.

Often, NPOs are charitable organizations. However, in Austria, the term "charitable" is only anchored in tax law.

Reference:
Meyer, Michael; Simsa, Ruth: NPOs: Distinctions, Definitions, Research Approaches in: Meyer, Michael; Simsa, Ruth, Badelt, Christoph (Eds.): Handbook of Nonprofit Organizations, Stuttgart 2013, pp. 3-14.