A non-profit organization (abbreviated as NPO, also known as a not-for-profit organization[1]) is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals.[2] Examples of NPOs include charities (i.e. charitable organizations), trade unions, and public arts organizations. Most governments and government agencies meet this definition, but in most countries they are considered a separate type of organization and not counted as NPOs. They are in most countries exempt from income and property taxation.
There is a wide diversity of structures and purposes in the NPO landscape. For legal classification and eventual scrutiny, there are, nevertheless, some structural elements of prime legal importance:
- Economic activity
- Supervision and management provisions
- Representation
- Accountability and Auditing provisions
- Provisions for the amendment of the statutes or articles of incorporation
- Provisions for the dissolution of the entity
- Tax status of corporate and private donors
- Tax status of the foundation
Please feel free to contact any of our attorneys who engage in this practice:
Innovation Award
Jim Burkett was a co-presenter at the Glens Falls Hospital Foundation’s Planning Seminar titled "Medicaid and Long-Term Planning" on November 9, 2011. 