What is the correct term for the owner(s) of a nonprofit?
A. Due to the fact that nonprofits are formed for purposes other than making a profit, the entity is a non-stock entity. As a result, there technically are no owner(s) of a nonprofit. Nonprofits are similar to for-profit corporations, in that they are overseen by a board of directors. The nonprofit directors are responsible for making the major decisions for the nonprofit, and also appointing and supervising the officers of the nonprofit. The officers are then responsible for the everyday management of the nonprofit. Nonprofits also may have members, and some states require you to indicate on the nonprofit articles of incorporation whether directors and/or members will be involved in the nonprofit.
