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Types of Not-for-Profit Organizations

July 28, 2015

Tax exempt organizations are defined in IRC Code §501c.  Following, is a brief summary of the types of NFPs.  Common to all is that the organization cannot be organized for profit and no part of the net earnings can inure to the benefit of any private shareholder or individual.

Subsection (1) Instrumentals of the United States.

(2) Conduit or nominee corporations for an exempt organization under this section.

(3) This is the Section defining charitable organizations.  Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, litpaperchain-peopleerary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.

(4) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.

(5) Labor, agricultural or horticultural organizations.

(6) Business leagues, chambers of commerce, real-estate boards, boards of trade or certain professional athletic leagues.

(7) Clubs organized for pleasure, recreation and other non-profitable purposes, substantially all of the activities of which are for such purposes.

(8) Fraternal beneficiary societies, orders, or associations operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents.

(9) Voluntary employees’ beneficiary associations providing for the payment of life, sick, accident or other benefits to the members of such association or their dependents or designated beneficiaries, if no part of the net earnings of such association inures (other than through such payments) to the benefit of any private shareholder or individual.

(10) Domestic fraternal societies, orders, or associations, operating under the lodge system where the net earnings of which are devoted exclusively to religious, charitable, scientific, literary, educational and fraternal purposes, and which do not provide for the payment of life, sick, accident or other benefits.

(11) Teachers’ retirement fund associations of a purely local character, if no part of their net earnings inures (other than through payment of retirement benefits) to the benefit of any private shareholder or individual, and the income consists solely of amounts received from public taxation, amounts received from assessments on the teaching salaries of members, and income in respect of investments.

(12) Benevolent life insurance associations of a purely local character, mutual ditch or irrigation companies, mutual or cooperative telephone companies, or like organizations; but only if 85 percent or more of the income consists of amounts collected from members for the sole purpose of meeting losses and expenses.

(13) Cemetery companies owned and operated exclusively for the benefit of their members or which are not operated for profit; and any corporation chartered solely for the purpose of the disposal of bodies by burial or cremation which is not permitted by its charter to engage in any business not necessarily incident to that purpose.

(14) Certain credit unions.

(15) through (29) Other entities not included here.

If you want further details you can check out the Internal Revenue Code Sections referenced above.

One Comment leave one →
  1. 6hawthorne permalink
    July 28, 2015 1:36 pm

    HI ED I AM GOING TO START MY FOUNDATION FOR A NOT FOR PROFITFUND FOR MEBOB

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