Non-ProfitNon-profit corporations are associations, charities, cooperatives, and other voluntary organizations formed to further cultural, educational, religious, professional, or public service objectives. Their startup funding is provided by their members, trustees, or others who do not expect repayment, and who do not share in the organization's profits or losses from earned or donated income, which the non-profit retains or absorbs. Approved, incorporated, or registered non-profits are usually granted tax exemptions. Most non-profits organize under section 501(c)(3) under the Internal Revenue Code. Contributions to non-profits are often tax deductible. Most non governmental organizations (NGOs) are non-profits.
Non-profit corporations and their members do not pay personal or corporate income taxes related to the non-profit's business if they conduct it exclusively for the benefit of the general public. Organizing as a non-profit entity is advantageous for community-based enterprises that operate in the public interest.
Non-profit corporations receive close scrutiny from tax authorities due to tax exemptions they receive. The costs and effort of maintaining a non-profit corporation are higher than some other business forms. Similar to a for-profit C-Corp, non-profit corporations must develop and file articles of incorporation, operate with board of directors' oversight, and follow many other corporate procedures.