nonprofit corporation

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nonprofit corporation

n. an organization incorporated under state laws and approved by both the state's Secretary of State and its taxing authority as operating for educational, charitable, social, religious, civic or humanitarian purposes. A nonprofit corporation (also called "not for profit corporation") is formed by incorporators, has a board of directors and officers, but no shareholders. These incorporators, directors and officers may not receive a distribution of (any money from) profits, but officers and management may be paid reasonable salaries for services to the corporation. Upon dissolution of a nonprofit corporation its assets must be distributed to an organization existing for similar purposes under the "cy pres doctrine." In order for contributions to the corporation to be deductible as charitable gifts on federal income taxes, the corporation must submit a detailed application (with a substantial fee) for an Internal Revenue Service ruling that it is established for one of the specific nonprofit purposes spelled out in the Internal Revenue Code. Informational tax returns must be filed annually with the IRS and the state taxing body. In addition, the state Attorney General may have oversight powers to determine if the corporation is abiding by state laws by limiting its activities to its approved nonprofit purposes, and not milking the corporation for disguised profits. (See: corporation, charity)

References in periodicals archive ?
If a not-for-profit corporation derives more than $10,000 from the public or government during a fiscal year, that triggers a set of enhanced accounting and disclosure requirements.
The Illinois General Assembly has amended the General Not-For-Profit Corporation Act of 1986, requiring not-for-profit corporations to inform their employees by written notice or in their employment contract that they are not eligible for unemployment insurance benefits.
The Fashion Center Business Improvement District, a not-for-profit corporation, was established in 1993 to improve the quality of life and economic vitality of Manhattan's Fashion District.
Donors may restrict the use of assets contributed to a not-for-profit corporation or charitable trust.
Together they make decisions for Niigon's not-for-profit corporation.
Desert Area Resources and Training is a private, not-for-profit corporation that serves people with developmental disabilities such as mental retardation, epilepsy, cerebral palsy and autism.
Health care bonds enable a for-profit assisted living company to sell an existing facility to a not-for-profit corporation for cash while maintaining management of the facility for up to fifteen years.
In 1969, the United Cancer Council (UCC), a not-for-profit corporation whose stated purpose was to engage in cancer research, education and patient service, received an IRS ruling stating it was a tax-exempt charitable organization and donations to it were deductible for tax purposes.
The public-private, not-for-profit corporation will be chaired by Mayor Daley and overseen by a board of directors of Chicago business leaders appointed by the Mayor.
The Suffolk Community College Foundation is a 501(c) 3 not-for-profit corporation formed to develop additional resources to enable the college to provide quality educational experiences for its students.
The vice president of the not-for-profit corporation called a talk radio program Friday morning and told the rabbit's owners, Pepi and Jodi Novick, that he would do the burial for free at his pet cemetery, which is the final resting place of such animals as Hopalong Cassidy's horse, Humphrey Bogart's dog and Charlie Chaplin's cat.
a not-for-profit corporation supported through the Ontario Ministry of Economic Development and Trade's (MEDT) Ontario Centres of Excellence program.