Nonprofit


Also found in: Dictionary, Thesaurus, Legal, Wikipedia.
Related to Nonprofit: Nonprofit organizations

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).

Nonprofit.

Charitable, cultural, and educational organizations that exist for reasons other than providing a profit for their owners, directors, or members are nonprofit organizations.

However, these organizations can generate income to pay for their activities, salaries, and overhead by charging for services, making investments, and soliciting donations and memberships.

A nonprofit arts center, for instance, may charge patrons for tickets and event subscriptions.

Nonprofits incorporate in the states where they operate and are exempt from the state income taxes that for-profit corporations must pay. Some but not all qualify for federal tax-exempt status under section 501(c)(3) of the Internal Revenue Code.

Contributions to those qualifying organizations are tax deductible, though tax rules govern the percentage of your income you may deduct for gifts to different types of nonprofits.

In exchange for these tax benefits, nonprofits must comply with some of the same financial reporting rules that for-profit corporations follow.

For instance, nonprofits generally must follow corporate governance rules and make their financial reports available to the public.

References in periodicals archive ?
Built on 30 years of fund accounting experience, Kintera FundWare accounting software is designed specifically to meet the accounting and reporting needs of nonprofits and governments.
We partnered with Convio on this project because the company provides the strongest integration capabilities in the nonprofit marketplace, and we're pleased to have provided them the tools to bring this real-time integration functionality to life.
With online auctions powered by cMarket, Auctionpay now will provide its nonprofit clients a way to preview, track and sell their auction items online before, during and after a live event, and as an added year-round fundraising opportunity.
Given the missions of their organizations and the resource constraints nonprofits often face, CFOs told Bridgestar that one of the top challenges they face is dealing with nonprofit economics.
We wouldn't be opening without the help of organizations like the Nonprofit Finance Fund, which stepped up to the plate when typical sources were not prepared to help us move beyond the ruins of the World Trade Center.
Response: Producing the materials necessary to comply with a compliance review would place a tremendous, additional burden on the already resources-trained nonprofit community.
The critical question for the nonprofit sector is what great opportunities exist for leadership and influence as we shape the sector for the future.
Though the concept of the audit committee is not new to the nonprofit sector, its application has remained fragmented due to the size and diversity of the sector and a general lack of guiding principles for best practices.
As a result of his nonprofit board position, Kaiser was tapped for his first corporate board position at DowCorning.
The council, which will meet bimonthly, is intended to bring nonprofit, community service organizations together as a cohesive entity to determine the needs of the community, to solve problems and to effect change as needed.
But more than anything else, nonprofits must he relevant.
For the jet-setting CEO whose real job is generating quarterly corporate profits in tens of millions of dollars, the nonprofit world might seem a little like the Land of Make Believe.

Full browser ?