Glossary of Non profit Jargons

501 (c) (3) – A section of IRS under which it identifies different kinds of organizations eligible for tax exemption of various kinds. Annual report – A report published annually (or periodically) containing a description of activities undertaken by the organization during the reporting period. It also includes a general overview of the organization with respect […]

Incorporation of Non Profit Organization

Introduction to Incorporation – Incorporation of a non profit organization is a vast subject and needs a comprehensive treatment. ‘To’ or ‘Not-to’ Incorporate ? While making this choice , We would recommend an organization to incorporate if – a) The expected annual budget for the organization in years to come exceeds USD20000. (Just a thumbrule) […]

Types of Nonprofit Organizations

There are many types of nonprofit organization and they have been classified into different categories as per Section 501 of the IRS rules. We will first discuss charitable organizations that fall into the category of Section 501 (c)(3) of the IRS rules, as they are the most common kind of nonprofit organizations in the country. […]

Non Profit Organization-Is it suitable for me?

Introduction Why to incorporate a non profit (or ‘not-for profit’ as called in some states) Organization and why not a ‘for-profit’ organization ? The following constitutes the most important differences between the two. 1) A non profit organization cannot distibute back the profits from its activities as dividends to its board or general members. The […]