Not For Profit Organizations by George Hernandez

Here are some quick notes I took on the requirements of Not-For-Profits organizations.

Not-For-Profits (NFPs) can hire, pay salaries, benefits, and reimbursements.
At year's end profits are not distributed to employees but go back to the organization.
NFPs do not pay taxes for income as an organization.
501(c)3: IRS Code Classification for NFPs who cannot lobby but can accept and solicit tax deductible donations; i.e. if benefits flow out to the public (eg Churches) the organization gets tax deductible status: they are tax exempt and donations to them are tax deductible.
501(c)4: IRS Code Classification for NFPs who can lobby for its causes but contributions are not tax deductible; i.e. if benefits flow in from the public (eg Unions) the organization does not get tax deductible status: they are tax exempt but donations to them are not tax deductible.
NFPs must provide assistance to some population. EG:
- Church: religious & community services
- Library: books, education, etc.
- Scouts: full development of members in society
NFP demographics:
- Religious 47.9%
- Health & Hospitals 14%
- Educational 13.5%
- Social Welfare 10.8%
- Arts & Humanities 6.2%
- Civic & Public Groups 2.8%
- Misc. 4.7%
IRS requires annual reports and other documentation that the NFP continues to provide its services to the public.
NFPs must have a Board of Directors:
- At least three members
- Meets at least once per year.
- Clearly defined aim or mission
- Sets policies
- Elects officers
- Sees that mission is carried out
Typical NFP Staff:
- Executive Director or CEO: Hired by the Board and reports to the Board. In charge of daily operations. Often the only full time employee.
- Development Office: Fund Raising
- Program Development: Provides the Service
- Membership and Publications
- PR: for visibility, resources, and audience growth
- Administrative

Page Modified: (Hand noted: 2007-10-24 21:35:15Z) (Auto noted: 2010-12-24 22:58:55Z)