A Nonprofit Organization (NPO, also known as a non-business entity) is an organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization's directors (or equivalents) as profit or dividends. 
NPO's can help achieve a great many worthy goals but haven't the funding to provide the range of services that Government funded Welfare programs and a Welfare state can provide. Conservatives sometimes use NPO's as an excuse for not paying Taxes to support welfare provision and try to limit welfare provision to what private charities can fund.
US NPO Controversy Edit
In the US, the IRS provides various formats for NPO's. Some types of NPO's are restricted in their political activities. At about the time of the organization of many TEA Party organizations, the IRS noticed an extreme increase in the filings politically restricted NPO's. IRS investigation evidently led to the conclusion that some, or many TEA Party organizations were attempting to circumvent reporting requirements by the use of these politically restricted organizations. This IRS investigation, has led to Republican and Conservative charges of politically motivated investigation and prosecution by IRS.