Which statement about the term 'nonprofit' is true?

The statement that only organizations that do not make a profit can use the term "nonprofit" is accurate because the term refers to organizations that are established for purposes other than generating profit for owners or shareholders. Nonprofit organizations typically aim to serve the public interest, whether through charitable, educational, religious, or other social missions.

These organizations can generate revenue, but the key distinction is that any surplus revenue is reinvested back into the organization to support its mission rather than distributed as profit. This characteristic aligns with legal definitions of nonprofit organizations, which can include a variety of entities such as charitable foundations, educational institutions, and cultural organizations, among others.

While there are indeed rules governing how and when the term can be used, the essential principle is that a nonprofit operates primarily for a purpose that benefits the community rather than for personal profit. This framework is what establishes the boundaries for how organizations can classify themselves as "nonprofit" effectively.