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

GenCure, a Texas nonprofit corporation, focuses on regenerative medicine and uses the power of human cells and tissues to inspire hope, enhance lives and enable clinical advancements.

BioBridge Acquires University of Texas Tissue Recovery Programme

The County of Santa Barbara Assessor (Assessor) reassessed two mobile home parks owned by resident-controlled nonprofit corporations after residents sold both their mobile homes and their ownership interests in the corporation.

One way to value interest in a mobile home park that is owned by a nonprofit corporation is by extraction method

The TTC Foundation operates independently of the college as a nonprofit corporation, helping to bridge the gap between needs and resources for TTC students and employees.

Trident Technical College in South Carolina and its foundation recently announced a pledged gilt of $1 million by local business owner Carolyn D. Hunter that will be the largest donation in the college's history

The project supports and advances the sustainability goals of the Madelia Model, a rural development concept developed by Rural Advantage, a Minnesota nonprofit corporation. The facility will employ 20 permanent fulltime positions plus additional positions throughout the feedstock supply value chain.

Prairie Skies Co-op to build biofuels facility

ICMA-RC is an independent nonprofit corporation focused on providing retirement plans and related services for more than 860,000 public employees in more than 8,000 retirement plans.

NLC Corporate Partners Program

Community Health Centers of Arkansas, a nonprofit corporation based in North Little Rock, will oversee the integration and networking of each center into the network.

Health Center controlled network under development

Also, the bank has donated $5,000 to the Southeast Economic Development Corp., an independent nonprofit corporation providing and locating financial assistance for businesses in southeastern and south central New Hampshire.

Federal Savings Bank

The bill allows certain insurers to use a rate in excess of the filed rate if: the insurer has surplus as to policyholders of $500 million or more; the insurer has a surplus of $200 million or more and a ratio of net written premium to surplus of 2 to 1 or less; or the insurer has a surplus of $150 million or more, and offers insurance primarily as a service to members of a nonprofit corporation. An insurer using this provision cannot purchase coverage from the temporary increase in coverage limit of the Florida Hurricane Catastrophic Fund.

CS/CS/HB 1171--Residential property insurance

to the Roman Catholic Archbishop of San Francisco, a nonprofit corporation. The archdiocese is then transferring these parcels, plus 121 owned by the archbishop, to a third nonprofit corporation called the Archdiocese of San Francisco Parish and School Juridic Persons Real Property Support Corp.

Archdiocese may owe taxes to San Francisco

DeMeo said Michael Tracy, who formed the committee along with him, and Kerry and Ernest Bettez, drew up a business plan to create a nonprofit corporation to assume ownership of the smokestack.

Furniture icon's fate is sealed; Smokestack slated for demolition

Established by a federal charter in 1974 as a federally funded, private nonprofit corporation, LSC is highly dependent on federal appropriations for its operations.

Legal Services Corporation: Improvements Needed in Governance, Accountability, and Grants Management and Oversight

The nonprofit corporation's free licenses help authors, scientists, artists and educators keep their copyright while inviting certain uses of their work--a "some rights reserved" copyright.

Legalized stealing