What Is A Non-Profit Organization

What is a nonprofit organization? A nonprofit is a tax-exempt organization that serves the public interest. The purpose of a nonprofit organization is to be charitable, educational, scientific, religious or literary. Nonprofit organizations do not declare a profit. They utilize all their revenue available, after paying normal operating expenses, to serve the public’s interest. A nonprofit organization can be unincorporated or incorporated. An unincorporated nonprofit cannot be given federal tax-exempt status. When a nonprofit organization is incorporated, it has many similar characteristics with corporations that are for profit. The main difference is that nonprofit organizations do not have shareholders. When a nonprofit organization is given a tax-exempt status, it is exempt from paying federal income taxes. Most state and local taxes, property tax and tax on assets are also exempt. This is not always the case. Some states have different rules. Nonprofit organizations ...