Not-for-profit


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Not-for-profit

An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses.

Nonprofit Organization

An organization that operates as if it were a business but does not seek a profit. Common examples of nonprofits include charities, private schools, and think tanks. Nonprofits do not pay taxes; donations to many are tax-deductible, at least up to certain limits. In order to qualify for this status, however, a nonprofit must register with the IRS, under section 501(c) of the tax code. See also: 403(b).

Not-for-profit.

A not-for-profit organization pays taxes and may make a profit, but those profits are not distributed to its owners or members.

Private clubs, sports organizations, political organizations, and advocacy groups are examples of not-for-profit institutions. Contributions to these not-for-profits are not tax deductible.

Until it became a publicly traded company in 2006, the New York Stock Exchange was a not-for-profit membership association.

References in periodicals archive ?
Andrew Prather, CPA, CGMA, shareholder, Clark Nuber PS, suggested that a variety of not-for-profit governance philosophies and methods are available for research in books and online and that there is no one right method for all.
The current economic climate has been characterized by increased risk and uncertainty for all entities, and not-for-profit organizations are less distinct from for-profit businesses in this respect than ever before.
Making it easier for the province's not-for-profit organizations to do business is part of the new Ontario government's plan to strengthen the economy and build a fair society for all.
Bank of America holds a leading market share nationally and locally in the not-for-profit sector.
The second draft, Not-for-Profit Organizations: Goodwill and Other Intangible Assets Acquired in a Merger or Acquisition, proposes accounting guidance for those intangible assets after a merger or acquisition.
As an echo of the concerns raised by the first panel, the second panel examined situations where joint ventures failed and noted that such failures most often occur when the for-profits and the not-for-profits fail to clearly enumerate their expectations and responsibilities.
Reprinted from past editions of the Not-for-Profit Report
The program, in conjunction with the Toledo Community Foundation, offered area leaders a chance to discuss the current climate in the not-for-profit world.
While Hicks' organization has been operating as a not-for-profit group since 1999, analysts say Provident is by no means a conventional charity.
From a business perspective, not-for-profit does not mean "not making any profits.
The movement away from not-for-profit status is a direct response to the competitive changes in the health-care industry and the restrictions placed on the financial operations of not-for-profit health plans, including the inability to raise capital.