Not For Profit Organizations

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

2007-10-24 21:35:15Z