nonprofit organization

The CivicMinded Companion

nonprofit organization (non-governmental organization/NGO, charity, charitable organization) - a corporation, trust, or association whose mission is to improve community services through, for example, health care, education, the arts, science, sports, churches and religious programs, the environment, historic preservation, etc. >> NONPROFIT ASSOCIATION, CIVIL SOCIETY, NONPROFIT SECTOR, 501(c)(3) TAX-EXEMPT STATUS

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In the United States, nonprofit organizations are subject to state and federal laws, including the Internal Revenue Code, which determines whether private financial contributions they receive are tax-deductible by the donor.



To establish eligibility for grants from private foundations and receive contributions which are tax-deductible to the donor, a nonprofit organization must apply for a certificate of tax-exempt status from the Internal Revenue Service under Section 501(c)(3) of the Internal Revenue Code.



For information about starting a nonprofit organization, go to Idealist.org: Tools for Organizations



Nonprofit organizations which have received a 501(c)(3) tax-exemption are prohibited from engaging in certain activities (such as operating for the private interest of the founder) and from participating in elections (supporting or opposing candidates). Violation of any prohibitions results in loss of tax-exempt status.



Nonprofit organizations may engage in advocacy of all types, e.g., events, public education, Capitol Hill days, and lobbying (subject to some restrictions). More information about advocacy and permissible lobbying is available from the Alliance for Justice and the Center for Lobbying in the Public Interest.

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