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 general public or from a variety of funding sources is a public charity. A public charitable organization […]

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 grants or aid in contrast to business entities that have to use loans as a means of […]

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 trustees. While a non-profit organization can make a profit, the profit it earns must be used toward […]

Public Support Test

This classifica­tion of an organization as either a public charity or as a private foundation is important because different tax rules apply to the operations of these two categories. For instance, private foundations are subject to excise taxes while public charities are not required to do so. Further deductibility of contribu­tions to a private foundation […]

State Employment related laws for NPOs

Employment related laws differ widely across states. However the common thread for most of the states includes the following employment related laws. Most of these laws apply to employees only and would not apply to volunteers unless otherwise noted. State Workers’ Compensation Act • Applies to employers with three (3) or more employees. • Purpose: […]