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Mutual organization
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{{redirect|Mutuals|other uses|Mutual (disambiguation)}} {{Short description|Organization based on mutual benefit}}{{Refimprove|date=December 2009}} A '''mutual organization''', also '''mutual society''' or simply '''mutual''', is an [[organization]] (which is often, but not always, a [[company (law)|company]] or [[business]]) based on the principle of mutuality and governed by private law. Unlike a [[cooperative]], members usually do not directly contribute to the [[Capital (economics)|capital]] of the organization, but derive their right to profits and votes through their [[customer]] relationship. A mutual exists with the purpose of raising [[funding|funds]] from its membership or customers (collectively called its ''members''), which can then be used to provide common services to all members of the organization or society. A mutual is therefore owned by, and run for the benefit of, its members β it has no external [[shareholder]]s to pay in the form of [[dividend]]s, and as such does not usually seek to maximize and make large [[Profit (accounting)|profits]] or [[capital gain]]s. Mutuals exist for the members to benefit from the services they provide and often do not pay [[income tax]].<ref>Simpson, Steven D. ''Multistate Guide to Regulation and Taxation of Nonprofits.'' CCH, 2005. Print. {{ISBN|978-0-8080-8930-8}}.</ref> Surplus revenue made will usually be re-invested in the mutual to sustain or grow the organization, though some mutuals operate a [[dividend]] scheme similar to a cooperative.<ref>{{Cite web |title=Nationwide Fairer Share {{!}} Nationwide |url=https://www.nationwide.co.uk/about-us/fairer-share/ |access-date=2024-03-17 |website=www.nationwide.co.uk}}</ref>
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