Have you ever donated to a charity? What about a hospital or school? If so, you may have given to a nonprofit. But, what is a nonprofit? And, how do they work? Get the answers to all of your burning questions below.
What is a nonprofit organization?
Let’s start with the basics: What does nonprofit mean? A nonprofit organization, or NPO, is an organization with a purpose to further a social cause and provide a public benefit. NPOs use profits to support the organization’s cause or goal, but funds can also pay for other things, such as administrative costs.
Because of its mission, an NPO qualifies for tax-exempt status by the IRS. This means that the nonprofit organization is typically not responsible for paying income tax, property tax, orsales tax。但是要免税，大多数组织必须申请tax-exempt statusthrough the IRS.
以下是一些非营利组织的示例：
- Hospitals
- Public schools
- National charities
- Foundations
- 教堂（例如犹太教堂，清真寺和寺庙）
- 博物馆
- Research institutes
- 工人工会
您向非营利组织捐款通常是可抵税的，并且非营利组织不对收到的捐款缴税。
Nonprofit vs. not-for-profit
You may be thinking, “Oh, I’ve heard of a not-for-profit before.” Although they sound similar, nonprofits and not-for-profits are not one and the same.
所以，什么是not-for-profit? Like a nonprofit, a not-for-profit does not earn profits for its owners. However, not-for-profits are not required to benefit the public good. This means that a not-for-profit can exist to solely serve its members’ goals.
A not-for-profit may include clubs, such as a soccer club, women’s club, or another association formed by a group of people. The not-for-profit can use its funds to fulfill its organizational objectives, goals, etc. On the other hand, nonprofits generally include organizations with charitable purposes, such as educational or research purposes.
Types of nonprofits
有很多不同类型的非营利组织。让我们浏览其中的一些：
- 501（c）（1）：根据国会法案组织的公司
- 501(c)(2): Title Holding Corporation For Exempt Organization
- 501（c）（3）: Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
- 501(c)(4): Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
- 501（c）（5）：劳动，农业和园艺组织
- 501(c)(6): Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
- 501(c)(7): Social and Recreational Clubs
- 501(c)(8): Fraternal Beneficiary Societies and Associations
- 501（c）（9）：志愿雇员受益人协会
- 501（c）（10）：国内兄弟会和协会
在所有的更多信息types of nonprofits, check outIRS Publication 557。
非营利组织状况的资格
To qualify for NPO status, an organization must meet the following requirements:
- 拥有进一步的宗教，科学，慈善，教育，文学，公共安全或虐待性的原因或目的的使命
- Serve the public in some way, whether it’s to offer goods, services, or both
- Make financial and operating information public
- Not participate in any political activities or incur any expenditures for political activities
- Maintain compliance with the agency that regulates charitable organizations (if applying and receiving tax-exempt status)
Keep in mind that each state has different rules, regulations, and fees when starting a nonprofit organization. Check with your state to find out more information if you’re interested in forming a nonprofit.
Benefits of nonprofits
Thinking about starting a nonprofit? Just curious what the upsides and downsides of nonprofits are? Check out some pros and cons below.
Advantages:
- Doing good for a cause
- Tax exemption
- 个人责任保护
Disadvantages:
- 很多文书工作
- Limited funding
- Must makefinancial statements上市
Regardless of whether you run a nonprofit or small business, you need an easy way to track income, expenses, and more. Patriot’saccounting softwarelets you streamline your accounting process so you can get back to business. Start your free trial today!
This is not intended as legal advice; for more information, please点击这里。