Considered Non-Profit

Non-profit organizations include, but are not limited to: Fraternal beneficiary societies, orders or Associations, cemetery corporations and corporations organized or trusts created for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals, home owner associations, business leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, as well as clubs organized and operated exclusively for pleasure, recreation and other non-profit purposes. The net profit of these organizations cannot benefit any private stockholder or member. An unwarranted salary, however, may cause a corporation or organization to lose its nonprofit status.

According to our text, “Not-for-profit organizations lack a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit.” “Because significant resources are provided to governments and not-for-profit organizations, financial reporting by these organizations is important.” (Page 2).

The 501(c)3 tax code specifically for organizations that are reserved for educational institutions, churches or other nonprofit organizations including what is often deemed as charitable (Lavarda, 2009). There are two main reasons that an organization will seek to attain a tax-exempt status with the federal government through the Internal Revenue Services (IRS). First, is to provide for their beneficiaries a tax-deductible contribution, which allows taxpayers benefits when paying their federal income taxes and secondly, simply is for organizations the ability to not pay federal income taxes (Lavarda, 2009; Arnsberger, Ludlum, Riley, & Statnton, 2008). Organizations who seek out the tax-exempt status do benefit from the protection that the tax code provides, however due to tax code regulations and reform, organizations that do not heed to the code may be in jeopardy of violating the code. This violation will result in the IRS revoking the tax-exempt status. For emerging organizations that are on the cusp of defining their affiliations in society must determine if applying for tax-exemption status is a profitable move. Due to the scrutiny of these organizations and such organizations must take into account the liability that comes with the tax exemption status. The liability is not one that an organization can take lightly, if an organization does gain tax-exemption status and then later fails to abide by the regulations, the risk is simple; the revocation of the

Many organizations non-profit status does not allow lobbying or being involved in any political process. That’s when the community partnership really plays an important role of being a part of a

Non-profit organizations are groups that operate through fundraisers/donations. The IRS does not tax these organizations because the money is most of the time going towards something not someone. Some examples of non-profit organizations are American Red Cross, Save the Children, American Cancer etc...

Nonprofit organizations (301C3) organizations receive certain tax benefits such as being tax exempt, as a result nonprofit organizations can not distribute profits or benefits to shareholders and are considered owned by the people. A for profit organization has the sole purpose of making shareholders a profit and therefore is taxed by the government.

Nonprofits are a unique and prevalent entity that differ in many respects from traditional administration. Basically, what makes nonprofits so unique is that these organization do not have shareholders to pay dividends to. Profits are fully driven towards accomplishing the purpose of the nonprofit. As with for-profit organizations, nonprofits also have a board of directors, but their decisions are not influenced in the same way. For-profits must shape their future in a way that will make their shareholders happy and provide financially sound returns. Nonprofits are guided solely by what will help further their mission, they are not juggling profit goals and social goals together. Nonprofits can also be exempt from taxes in certain occasions,

All charities with donations of \$25000 or more must file financial reports annually with the U.S. Internal Revenue Service (IRS).

Nonprofits organizations make money as a result of their plans and activities and use it solely to cover all the expenses. The benefits of nonprofit’s expenses is that as long as the costs are associated with the organization’s purpose, profit made isn’t taxable.

Out in the world there is tons of non-profit organizations available to look through and to fund. But their is also charities to fund. A non-profit organizations is an incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially.A charity is an organization setup to provide help and raise money for those in need. Girl scouts is one of the many organizations. The difference between the two is that a non-profit Corporation can’t pay the owner a dividend. Nonprofit organizations allow people to join together and combine resources to achieve common goals. People start nonprofit organizations to work on social problems or respond to needs in their communities.

Due to their unique position in a sector that is not purely public or private, nonprofit organizations are forced to deal with various tensions. In order to gain and maintain the public trust, it’s important for nonprofits to address and try to limit any tension in their operations. Since nonprofits must earn their status, they need to be careful with their actions in order to maintain it. If they have a reason to, the IRS has the ability to take away an organizations status as a 501(C) or another label. Nonprofits under the 501(c) status are the most common in our society.

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial

Organizations can take different forms: unincorporated associations, charitable trusts, or nonprofit corporations. When for-profit entities generate profit, that profit is generally shared with its owners as soon as it is practicable and legal to do so. On the other hand, a nonprofit organization cannot share its excess revenues or “profit” as it does not have owners in the same sense and generally a nonprofit must use its excess revenues to further its mission. This principle is known as the “non-distribution constraint” and it both unifies the broad array of nonprofits and sets them apart from their for-profit counterparts. (

Charitable organizations are formed for many different purposes, but in order to be eligible for tax exempt status, a nonprofit organization must meet the description of one of the forms described in The Internal Revenue Code of 1986 §501(c). According to I.R.C. §501(c) there are 29 different sections through which a nonprofit organization can be eligible for income tax exemption. The most commonly used exemption is described in I.R.C. §501(c)(3) which accounts for 1.11 million of the total 1.72 million organizations that are exempt from tax (Fishman, 2015). Because these organizations are governed by §501(c)(3) of the tax code, they are referred to as 501(c)(3) organizations (Fishman, 2015).

As a non-profit, you qualify for exemption from income, sales and property taxes, allowing you to put more of your money towards fulfilling your mission. Likewise, non-profit status may qualify you for some types of government funding.