Other less common types of NPO

Advocacy groups: Organizations formed to influence the legislation or Government policies on particular issues are commonly known as ‘advocacy groups’.  Advocacy groups do not classify as charitable organizations and as such cannot claim tax exemption under section 501(c)(3). Selective tax exemptions are available under different clauses of Section 501 (c) for such organizations.

Auxiliary organizations: Organizations which are set as a subsidiary or as a support organization to a parent organization. The parent organization may be a ‘for-profit’ or a ‘not-for-profit’ organization.

Employee Benefit Funds: These are organizations which may or may not be supported by the employer of the organization but are established with the prime objective to formulate plans and raise funds for employee benefits.

Membership Organizations: Organizations set up for the benefit of it constituent members as opposed to a public charities that work for the community. Examples include – Veteran’s groups, Trade Associations etc.

Recreational Clubs: Organizations for providing recreation facilities and platform for its members. Charitable activities may also be undertaken but not as a priority. Examples include – country clubs, sports club etc.

Quasi Non profit organizations: Organizations with a hybrid or mix structure of different types of profit and non organization structures.


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