In organizational structure, a nonprofit generally takes the form of a corporation, but it can also be registered as an endowment, an individual enterprise, an unincorporated association, a partnership, a foundation, a trusteeship or some other type of entity as defined by individual state law. The donations made to nonprofits are typically tax deductible, but the nonprofits must make financial and operating information public so donors can see how effectively their contributions are being used. Excess revenue can't be recognized as a profit or paid out as dividends to investors. Nonprofits are limited by the "non-distribution constraint" - all their revenue after expenses must be devoted to furthering the organization's mission. In addition, employee taxes generally apply the same to non-profit organizations as for-profit organizations. However, an organization may have to pay federal taxes on income that is unrelated to their mission. Internal Revenue Service (IRS) and generally do not pay income taxes on the donations received or money earned through fundraising activities. Nonprofit organizations are granted tax-exempt status by the U.S. For example, nonprofit organizations are created to offer accreditation and pursue research. A nonprofit may also be created to further non-charitable pursuits like sports or hobbies. The mission statements of nonprofits are often tied to specific goals in areas like public welfare, public safety, religion, science, education, art, environmental protection or aid for the less fortunate. Nonprofits are normally organized around social causes or to serve the public good in ways that government agencies cannot. Many of the most familiar nonprofit organizations are 501(c)(3) charitable organizations. Nonprofit organizations are prohibited from generating revenue, but instead excess revenues are put back into the operation of the organization – they are not disseminated to owners or investors. A nonprofit organization is an entity formed to meet a specific tax-exempt purpose aimed at benefiting the public, a specific group of individuals or the membership of the nonprofit.
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