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)

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References in periodicals archive ?
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The President's proposal is similar to legislation introduced in the 114th Congress by House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) that would create a "federally chartered, fully independent, not-for-profit corporation to operate and modernize the ATC system."
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No fees are collected from players and teams, and Classic Basketball Inc., a 501(c)3 not-for-profit corporation that acts as a foundation for the tournament, covers all expenses for the players.
MITRE, a not-for-profit corporation, supports federally funded research and development centers in support of government and the private sector.
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Last week, Niagara County Sheriff James Voutour was elected by its members all of the elected and appointed sheriffs of New York State--as president of the New York State Sheriffs' Association, a not-for-profit corporation, formed in 1934, to assist sheriffs in "the efficient and effective delivery of services to the public."