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Nonprofit Organization
(redirected from Tax-Exempt Organizations)

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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).


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It is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.
Critics claiming that there are "too many" nonprofits will have something to cheer about in early 2011 when the Internal Revenue Service (IRS) publishes the list of tax-exempt organizations that have had their status automatically revoked for failure to file annual information tax returns for three consecutive years.
Recently, the Internal Revenue Service (IRS) offered a one-time relief program to help these organizations preserve their status as tax-exempt organizations.
 
 
 
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