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)…. Read More

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… Read More

Primary types of non-profit organization

Most of  the non-profit organizations in U.S.A operate as : Public Charitable Organizations OR as Private Foundations The rules & regulations for both these categories differ widely. 1) Public charitable organization: An organization that raises funds from the… Read More

NPOs: Advantages & Disadvantages

Advantages of starting a non-profit organization Most of the income of a non-profit is exempt from income taxes. The contribution from a donor is also tax exempt in most of the cases. A non profit organization can receive… Read More

Nonprofit organization: Definition & meaning

The term ‘non-profit organization’ refers to an organization that: Operates for the common good and not for generating individual wealth. Does not distribute its profits to individuals who control the organization such as its members, officers, directors, or… Read More