A nonprofit organization qualifies for
nonprofit status only if it fits into one of the categories in Section 501(a)
of the Internal Revenue Code. These qualification requirements must
continue to be satisfied to avoid termination of nonprofit status. See
"Reference Chart".
Requirements of a nonprofit status
organization:
Nonprofit organization serves some type of common
good.
Nonprofit organization is not a "for profit" entity.
Net earnings do not benefit the members
of the nonprofit organization.
Nonprofit organization does not exert political
influence.
Certain
activities of a nonprofit organization may result in a tax liability including:
Unrelated business activities.
Feeder organizations.
Private foundations.
Prohibited transactions.
Related IRS Publications: The following publications can be viewed in Adobe Acrobat Reader. To
get it click
here.
Publication 525 ..... Taxable and Nontaxable Income
Publication 526 ..... Charitable Contributions
Publication 557 ..... Tax-Exempt Status for Your Organization
Publication 571 ..... Tax-Sheltered Annuity Programs for Employees of
Public Schools and Certain Tax-Exempt Organizations
Publication 598 ..... Tax on Unrelated Business Income of Exempt
Organizations
..... Taxable and Nontaxable Income
