Sources for Nonprofit fundraising

The most basic sources of nonprofit fundraising are: Individual donors: As per a report published by Giving USA, funds from individual donors constitute around 3/4th of the total charitable donations in the United States. Corporate giving: Corporate funds can be raised in two forms: a) Event sponsorship – which is more of an episodic funding. […]

State Wise Naming Requirements

States have prescribed a list of permissible/required prefixes or suffixes and the list of terms that cannot be used in the name of a nonprofit organization.(Corporations) Statewise naming rules for corporations State Corporate Designators and other naming requirements Alabama Must use “corporation,” or “incorporated,” or an abbreviation of one of such words. Alaska Must use […]

Volunteer personal liability protection for NPOs

Volunteers of a U.S nonprofit organization are protected from personal liability under the Volunteer Protection Act of 1997, 42 U.S.C. 14501. As per the provisions of the Act, all volunteers of a nonprofit organization are protected from personal liability if: the loss was not a result of willful, reckless or criminal misconduct, gross negligence, or […]

Types of NPO: IRS classification

IRS classifies non-profit organizations into 32 categories each with several sub categories. (See: Table below). These categories/sub categories have been mentioned in the IRS code under sections 501(c)(1) up to section 501(c)(27) and under sections 501(d) – 501(n). Section of 1986 Tax Code Description of organization General nature of activities 501(c)(1) Corporations Organized Under Act […]

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 […]