Nonprofit Organization

Filed Under » Non-Profit Business, Public Charity

Definition of 'Nonprofit Organization' A business entity that is granted tax-exempt status by the Internal Revenue Service. Donations to a nonprofit organization are often tax deductible to the individuals and businesses making the contributions. Nonprofit organizations must disclose a great deal of financial and operating information to the public, so that donors can ensure their contributions are used effectively. Nonprofit organizations are also called 501(c)(3) organizations after the section of the tax code that allows them.

Investopedia explains 'Nonprofit Organization' Nonprofit organizations don't pay income tax on the money they earn from fundraising activities or donations. The organization must further a religious, charitable, scientific, literary, educational, public safety, amateur sports or cruelty prevention purpose to qualify for tax-exempt status; it must also provide a public benefit. Examples of nonprofit organizations include churches, hospitals and schools.

Related Definitions

1. Service Corps Of Retired Executives - SCORE

2. Accountants for the Public Interest - API

3. Not For Profit

4. Food And Agriculture Organization - FAO

5. Social Responsibility

6. Philanthropy

7. Private Foundation

8. Charitable Donation

9. 501(c)

10. National Association of Investors Corporation ...

Articles Of Interest

1. Deducting Your Donations

   Generosity may be its own reward, but some charitable giving also provides personal tax benefits.

2. Gifting Your Retirement Assets To Charity

   There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.

3. Cut Your Tax Bill With Donor-Advised Funds

   Beat the tax man come April 15 by investing in a charity-friendly fund.

4. The Best Way To Borrow

   There are many avenues from which to drum up funding. Find out the pros and cons of each.

5. Social Finance Careers: Creating A Better World

   Find out how to snag a career that could bring you more than money.

6. Do nonprofit organizations pay taxes?

   Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. A nonprofit organization is an organization that engages in activities ...

7. Navigating Government And Nonprofit Financial Statements

   Learn how to trace where your tax dollars and charitable donations are going.

8. It Is Better To Give AND Receive

   You give to benefit others, but there can be perks for you too.

9. Trading The Non-Farm Payroll Report

   Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create.

10. Does the federal government fund any NGOs? Which ones?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national and international levels to serve ...