Investopedia

Continue to Site »

Nonprofit Organization

Filed Under » ,
Dictionary Says

Definition of 'Nonprofit Organization'

A business entity that is granted tax-exempt status by the Internal Revenue Service. Donations to a nonprofit organization are often tax deductible to the individuals and businesses making the contributions. Nonprofit organizations must disclose a great deal of financial and operating information to the public, so that donors can ensure their contributions are used effectively.

Nonprofit organizations are also called 501(c)(3) organizations after the section of the tax code that allows them.

Investopedia Says

Investopedia explains 'Nonprofit Organization'

Nonprofit organizations don't pay income tax on the money they earn from fundraising activities or donations. The organization must further a religious, charitable, scientific, literary, educational, public safety, amateur sports or cruelty prevention purpose to qualify for tax-exempt status; it must also provide a public benefit. Examples of nonprofit organizations include churches, hospitals and schools.

Articles Of Interest

  1.

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.

  2. Gifting Your Retirement Assets To Charity

    There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.

  3. Cut Your Tax Bill With Donor-Advised Funds

    Beat the tax man come April 15 by investing in a charity-friendly fund.

  4. The Best Way To Borrow

    There are many avenues from which to drum up funding. Find out the pros and cons of each.

  5. Social Finance Careers: Creating A Better World

    Find out how to snag a career that could bring you more than money.

  6. Do nonprofit organizations pay taxes?

    Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. A nonprofit organization is an organization that engages in activities ...

  7. Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.

  8. It Is Better To Give AND Receive

    You give to benefit others, but there can be perks for you too.

  9. Trading The Non-Farm Payroll Report

    Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create.

  10. Does the federal government fund any NGOs? Which ones?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national and international levels to serve ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center