Types of Nonprofits: The Ultimate Guide to the World of Nonprofit Organizations

You’ve probably heard of the term “nonprofit organization”, but are you completely sure what it means? 

Did you know that there are many different types of nonprofits, each with their own peculiar characteristics? Here’s a quick rundown, illustrated by some choice statistics, as using stats is one of the best ways to illustrate what you are trying to say.

Nonprofit Organizations Flower in Hands

What is a nonprofit? 

So, how do you define “nonprofit”? 

For nonprofits in the US, that surely seems obvious – any organization with a good cause that does not operate on a for-profit basis is an nonprofit, right? While that’s the gist of it, there’s more to it than that. Here are some facts to make things clearer:

1. A nonprofit organization is one that focuses on a social cause or shared mission. 

(Source: Learning Hub) 

Understandably, this can cover a wide range of charity organizations or organizations promoting social causes, including some that promote causes that many people wouldn’t see as being useful.

2. Nо-one owns nonprofit organizations, which means their finances depend on the generosity of others.

(Source: Learning Hub) 

Nonprofits are accountable to their donors. That being said, some of them, like churches, require members to pay fees (tithes).

3. Three criteria are required to qualify as a nonprofit, according to nonprofit legislation. 

(Source: Learning Hub) 

  • the organization must be private and separate from the government
  • the organization must be established and self-governing
  • all surplus of the revenues of the organization must go to advance the organization

4. In the US, there are several different types of nonprofits:

(Source: Learning Hub)

The types of nonprofits range from 501(c)(1) to 501(c)(29), and 501(d) to 501(q), plus 521(a) and 527. There are also several subdivisions of these. 

5. The one thing in common among all these types is they are not organized only for profit. 

(Source: The Balance SMB)

Other than this, the nonprofit definition is very broad.

6. Many people mistakenly think that nonprofits don’t turn a profit. 

(Source: Learning Hub)

Many do, but the distribution of profit is wholly for spending, unlike for-profit companies, which distribute their profits to owners and shareholders. 

7. Nonprofit organizations’ money is used for staff salaries and operations. 

(Source: Chron)

As mentioned above, any surplus of the revenues is spent by the organization. 

8. One of the key aspects of nonprofits is that their money can come from donors, membership fees, or fundraising.  

(Source: Learning Hub)

Membership fees tend to be important for some religious institutions. 

9. Nonprofits are tax-exempt or charitable  

(Source: The Balance SMB)

This is based on the idea that an NPO is a non-business entity. 

10. Each registered type of nonprofit institution is different.

(Source: The Balance SMB)

This encompasses eligibility, lobbying, electioneering, and tax-deductible contributions. 

11. By nonprofit legislation, nonprofits operate for the benefit of the public, not anyone employed by the organization. 

(Source: Chron)

Those employed by NPOs are public servants, in a sense.  

12. Some nonprofit organizations aren’t charities. 

(Source: Learning Hub)

Charity organizations are NPOs working to benefit the public. All charities are nonprofits, but not all nonprofits are charities. 

13. Here’s some examples of the impact of nonprofit organizations: 

(Source: Learning Hub)

  • fundraising for good causes
  • connecting people within communities
  • doing research
  • informing donors
  • finding out human needs
  • creating awareness

Nonprofit statistics

Nonprofit Organizations Statistics Document Papers

Now that we’ve explained some about what nonprofits are and what they do, here are some statistics to illustrate the large impact nonprofits have on the American and world economy and society. Tens of millions of individual lives are bettered by their activities, which is something to appreciate.

14. 11.9 million people work in the American nonprofit sector.  

(Source: Philanthropy News Digest)

  • this makes it the third largest economic sector by employment in the US, behind only retail and manufacturing.
  • for public charitable entities, 48% of funding comes from user fees
  • a third of funding comes from government sources
  • 13% is derived from philanthropic donations
  • 6% is derived from investments and other sources

15. How do nonprofits get funding? Out of the people who don’t go to church, 75% donate to nonprofit organizations. 

(Source: NonProfits Source)

This forms an important part of their mechanisms of money raising, and is despite some Americans’ belief that nonreligious people are uncharitable. 

16. 10 million people in the US tithe (donate money through their church). 

(Source: NonProfits Source)

The total sum raised is $50 billion annually. Some churches have compulsory tithing, while for others it is optional. Many churches donate portions of their tithes to charitable entities. 

17. 90% of all companies believe that partnering with nonprofits with a good reputation is good for their company. 

(Source: NonProfits Source)

89% of companies think that partnering takes advantage of their ability to improve their community by furthering a particular social cause. 

18. 92% of corporate HR executives believe that partnerships with a non-business entity improves employee skills. 

(Source: NonProfits Source)

In this way, these partnerships benefit both parties. 

19. 63 million people in the US volunteered for a nonprofit in 2018. 

(Source: NonProfits Source)

That was around one in five Americans. 

20. Two-thirds of nonprofits in the world accept online donations. 

(Source: NonProfits Source)

Online payments are an extremely convenient method to help organizations furthering a particular social cause.

21. In 2017, the average nonprofit institution raised $1.13 per person visiting their websites.

(Source: NonProfits Source)

This is a significant figure, considering how visited these websites are. International nonprofits raised the most per visitor ($4.11), while organizations in the RIghts sector raised the least – $0.31. 

22. In 2019, 175 million Americans donated to charity organizations.

(Source: Independent Sector)

That’s more than half of the American population. 

23. Of all #GivingTuesday online donations to nonprofits in the US, the largest percentage goes to faith-based nonprofits.

(Source: NonProfits Source)

Organizations like the Salvation Army are well known for their charitable activities. 

24. Half of all traffic to the average not-for-profit organization in 2017 came from mobile devices.

(Source: NonProfits Source)

This is comparable to the percentage of total web traffic mobile devices account for. 

25. For nonprofits, custom-branded donation subpages raised 6x more private charitable contributions.

(Source: NonProfits Source)

More evidence, it would seem, that people trust in branding.

26. 85% of American companies have corporate giving programs.

(Source: NonProfits Source)

This is a great help to furthering a particular social cause. 

27. The average nonprofit institution considers workplace giving a growth area.

(Source: NonProfits Source)

Companies are increasingly image-conscious, and nonprofits can take advantage of this. 

28. 30% of nonprofits are on Instagram, while 28% are on Youtube. 

(Source: NonProfits Source) 

Social media can be a great way to gain exposure, whether you’re a non-business entity or not.

29. 55% of people engaging with а not-for-profit organization on Twitter end up completing some specific action.

(Source: NonProfits Source)

30. 1.4 billion people worldwide donated to public charities in 2018. 

(Source: NonProfits Source)

That’s more than 1 in 6 people in the world. 

31. Regarding fundraising for nonprofits: they raise an average of $17 for every 1,000 fundraising emails sent. 

(Source: NonProfits Source)

A good return on investment, don’t you think?

32. Between 15% to 18% of recipients open nonprofit emails.

(Source: NonProfits Source)

The best charities to donate to in 2020 likely earn a higher rate.

33. 5.4% of the United States gross domestic product came from nonprofits (including global charity organizations) in 2015.

(Source: National Center for Charitable Statistics)

That was a total of nearly 1 trillion dollars. 

34. A quarter of US adults were nonprofit volunteers in 2016. 

(Source: National Center for Charitable Statistics)

That amounted to nearly 9 billion hours, worth nearly $200 billion. 

35. 5-10% of the US economy and 10% of US employment came from the nonprofit sector.

(Source: Stanford Social Innovation Review)

Within these totals,  public charities and private foundations are especially important.

36. 75% of revenue and expenses of IRS-registered nonprofits were by 501(c)(3) public charities.

(Source: National Center for Charitable Statistics)

They also accounted for two-thirds of the total assets of the nonprofit sector – all tax exempt. 

37. If all nonprofits together were a country, it would be the 5th largest economy in the world.

(Source: The Quiet Crisis)

The top charity organizations are naturally the most prestigious among these, but they’re only the tip of the iceberg. 

Types of non profit organization

Nonprofit Organizations Llight Bulb White Board

In the US, the IRS registers quite a few different types of nonprofits, each with its own organization and rules. What are the different types of 501(c) organizations, among others? What types are the nonprofits near me? Here are the different types: 

501(c)(1)

38. 501(c)(1)s are types of nonprofits organized under acts of Congress, which includes federal credit unions, and serve as instrumentalities of the United States. 

(Source: International Revenue Service)

  •  A not-for-profit organization of the type 501(c)(1) does not have to file an annual return. Tax-exempt contributions are allowed if they are made for exclusively public purposes. 

501(c)(2) 

39. Organizations of type 501(c)(2) are corporations created to hold titles for property owned by another nonprofit. 

(Source: International Revenue Service)

In layman’s terms, they’re nonprofits which help other nonprofits. They do not pay income tax. 

501(c)(3)

40. An organization is not a charitable nonprofit until it has 501(c)(3) tax status through the IRS. 

(Source: Learning Hub)

Other 501(c) organizations are nonprofits, but not charities. This is the only one of the global types of charities registered in the US. 

41. The 501(c)(3) designation is reserved for nonprofits and charities (like a charity trust) that qualify under Section 501(c)(3) of the Internal Revenue Code. 

(Source: International Revenue Service)

This means that non-qualifying organizations can’t misrepresent themselves as 501(c)(3) to the public.

42. To be approved for 501(c)(3) tax exempt status takes between 2 and 12 months. 

(Source: International Revenue Service)

Once an organization becomes a 501(c)(3), it is required to follow a strict set of fundraising guidelines to maintain its status.

43. Organizations of type 501(c)(3) are known as “True nonprofits” by professionals working in the industry. 

(Source: Learning Hub)

This is because, as mentioned above, organizations operating under 501(c)(3) rules are the only type of tax exempt charitable nonprofit the IRS recognizes.

44. 501(c)(3) organizations are funded primarily through charitable donations and government grants.

(Source: Learning Hub)

As mentioned above, a very large percentage of Americans give to charity regularly. 

45. Organizations registered under 501(c)(3) requirements are the most popular type of nonprofits. 

(Source: Learning Hub)

This is because a large percentage of nonprofits have charitable giving as their main activity. 

46.  There are more than 1.5 million registered charitable organizations, all meeting the nonprofit definition,  in the United States. 

(Source: National Center for Charitable Statistics)

That’s more than the population of several states. 

47. There are 29 categories of tax exempt organizations that fall under the 501(c)(3) section.

 (Source: National Center for Charitable Statistics)

The IRS is well-known as a lover of complexity. 

48. A nonprofit organization fits under the 501(c)(3) category if it fulfills any of the following purposes: 

(Source: International Revenue Service)

  • religion, education, science, literature, public safety testing, amateur sports, and the  prevention of cruelty to children or animals.
  • organizations like alumni associations, clubs, schools, chapters of international organizations also qualify as relevant for the  501(c)(3) category. 
  • common types of charitable organizations—which the IRS uses in its generally accepted legal sense—include food banks, museums, theatre 
  • groups, colleges, low-income housing organizations, and day care centers.

49. Nonprofits of type 501(c)(3) are the most common types of charitable organizations people contribute to, volunteer for, and hear about through the media. 

(Source: The Balance SMB)

50. Both public and private charities are usually prohibited from or limited in engaging in lobbying activities. 

(Source: Rocket Lawyer)

This is to ensure that the impact of nonprofit organizations like them is to the benefit of people directly. 

51. 501(c)(3) organizations can apply for tax-exemption for all income related to the business or mission. 

(Source: Rocket Lawyer)

Making such organizations tax exempt is meant to ensure they have more money to spend on their causes. 

52. Some of the most popular nonprofits of type 501(c)(3) in the U.S. are Easter Seals, the Boys & Girls Club and ProPublica. 

(Source: Projects ProPublica)

They are some of the best charities to donate to 2020. 

53. Аll 501(c)(3) organizations fall into one of the following two categories: public charities and private foundations. 

(Source: Projects ProPublica)

What is the difference between a foundation and a charity? One important difference is that a foundation derives more of its income from investments.

501(c)(3) public charity:

54. Public charities include organizations such as churches, food banks, animal shelters, educational foundations, and more. 

(Source: Learning Hub)

They are what many people think of when they consider the word “charity” and also what many want to know about when they ask the question “how do nonprofits work?”. 

55. Public charities rely heavily on public donations or government grants to fund the work they do. 

(Source: Learning Hub)

As mentioned above, by meeting the non profit definition, they are not commercial organizations. 

56.  There are three main requirements a 501(c)(3) must fulfill in order to remain a public charity. 

(Source: Learning Hub)

  • At least one–third of a public charity’s donated revenue must come from public support
  • By law, a public charity cannot raise more than a third of their income from unrelated commercial activity of investments.
  • Public charities must be governed by a board of directors
  • By law, no more than 50% of the board directors may be related to each other.
  • 501(c)(3)s must be actively supporting a direct, charitable activity
  • The purpose of this requirement is to ensure that only organizations doing active charity work reap the benefits of being a 501(c)(3) public charity.

501(c)(3) private foundation: 

57. Not all private foundations qualify as 501(c)(3)s and many designations are decided on a case-by-case basis. 

(Source: Learning Hub)

The line between philanthropic and non-philanthropic activity can be fine – the IRS has to judge whether an organization meets its non profit definition. 

58. The purpose of a private foundation is to support other nonprofits through grants and program funding. 

(Source: Learning Hub)

In layman’s terms, it’s a charity which helps other charity organizations. 

59. Private foundations are often founded by a single founder, family, or business. 

(Source: Learning Hub)

Examples include the Bill & Melinda Gates Foundation and the Clinton Foundation.

60. Private foundations are distinguished from public charities in 3 ways: 

(Source: Learning Hub)

  • Private foundations are not required to receive donations from the public
  • Private foundations are not required to have active programs to maintain 501(c)(3) status
  • The 501(c)(3) rules governing private foundations are more relaxed than public charities

61. Some nonprofits may qualify as a 501(c)(3) without being public charities or private foundations. 

(Source: Learning Hub)

These are always handled by the IRS on a case-by-case basis.

501(c)(4) 

62. Nonprofits of type 501(c)(4) are civic leagues and social welfare organizations. 

(Source: Learning Hub)

They are more focused on advocacy than direct action.

63. The primary difference between a 501(c)(3) and a 501(c)(4) is their ability to lobby and participate in influencing politics. 

(Source: Learning Hub) 

These types of non profit organization see political advocacy as a good means of effecting social change. 

64. 501(c)(4) charity organizations are allowed to freely participate in lobbying efforts that might help pass or repeal legislation. 

(Source: Learning Hub)

Some are good, and some bad. Which are which depends on your politics. 

65. 501(c)(4) charity organizations are also allowed to publicly endorse and promote legislation in order to gain support. 

(Source: Learning Hub)

This can be important in ensuring laws get passed.

501(c)(4) Social advocacy groups

66. Social advocacy groups are a type of 501(c)(4) with a primary focus of lobbying and promoting social or political change. 

(Source: Learning Hub)

A 501(c)(4) non-business entity promotes a certain cause through education and fundraising.

67. The main difference between a social welfare organization and a social advocacy group is whether they focus on lobbying and political influence as their primary driving force for creating change. 

(Source: Learning Hub)

Under nonprofit legislation, a social welfare organization is also a not-for-profit organization, but without such a political focus. 

68. Social advocacy groups rely heavily on membership dues to help supplement the money they receive from public donations. 

(Source: Learning Hub)

They do not receive government funding. 

69. Examples of social advocacy groups include organizations like the NAACP, Planned Parenthood, and the ACLU. 

(Source: Learning Hub)

Many of these organizations furthering a particular social cause have long and storied histories. 

501(c)(4) Social welfare organizations

70. Social welfare organizations work to promote social change through fundraising and public awareness. 

(Source: Learning Hub)

They do not engage in politics to the same extent as social advocacy groups. Many Americans who have volunteered for a nonprofit chose these organizations.

71. Social welfare groups can lobby for laws to be passed, but that is not their primary focus when it comes to creating change. 

(Source: Learning Hub)

Rather, they focus on direct action to benefit society. 

72. Examples of social welfare organizations include groups like volunteer fire departments or The Military Order of the Purple Heart Service Foundation. 

(Source: Learning Hub)

Most would agree on the importance of a nonprofit institution like these.

Private charitable foundations

73. As mentioned above, the main difference between a private charitable foundation and a public charity is in the management and fundraising structure. 

(Source: Learning Hub)

Public charities rely more on private donations. 

74. Private charitable foundations are privately owned nonprofits established to address global concerns such as education, medical research, environmental issues, and more. 

(Source: Learning Hub)

They are often large global charity organizations. 

75. Private charitable foundations are normally established by a single wealthy benefactor or business and are used to grant money to smaller, more niche nonprofits. 

(Source: Learning Hub)

Most carefully vet who will receive their funds through arranging fundraising for nonprofits. 

76. The money generated by private charitable foundations are not publicly fundraised, but contributed by and invested under by the founder of the foundation. 

(Source: Learning Hub)

Bill and Melinda Gates are famous examples who have founded such types of nonprofits. 

77. The top five wealthiest charitable entities (specifically, foundations) worldwide, based on the size of their endowment are:

(Source: World Atlas)

  • Bill & Melinda Gates Foundation – $4.2 billion
  • Ford Foundation – $11.2 billion
  • Howard Hughes Medical Institute – $18.2 billion
  • Wellcome Trust – $26 billion
  • Stichting INGKA Foundation – $34.6 billion

501(c)(5)

78. Nonprofit organizations of type 501(c)(1) are labor, agricultural and horticultural organizations that are educational or instructive, including unions, created for the purpose of improving conditions of work, and products of efficiency. 

(Source: International Revenue Service)

Though not many would bring up labor unions as an example when answering the question “What is a nonprofit?”, they have an important role in the United States. 

501(c)(6)

79. Business Improvement Organizations are one of the different types of nonprofits falling under the 501(c)(6) category. 

(Source: Chron)

This might seem like a vague term, but we’ll explain what it means shortly. 

80. 501(c)(6) allows for business leagues, chambers of commerce and real estate boards to receive a nonprofit tax exemption. 

(Source: Chron)

  • A business league is any association of individuals (nonprofit institution) engaged in the same industry who seek to promote their business interests in their community.
  • Chambers of commerce are organizations that typically promote the business success of all companies within their geographic region.

81. Nonprofits of type 501(c)(6) are allowed to engage in political activity or lobbying, as long as it is not extensive and only seeks to promote their organizational goals. 

(Source: Chron)

The US Chamber of Commerce is well known for its political activities. 

501(c)(7)

82. A nonprofit institution of the type 501(c)(7) is a social or recreational club. 

(Source: International Revenue Service)

These were particularly prominent in the early decades of the 20th century. 

501(c)(8)

83. Nonprofit organizations of type 501(c)(8) are fraternal beneficiary societies and associations, which provide payment of life, sickness, accident or other benefits to members. 

(Source: International Revenue Service)

They act like insurance companies, but each is a not-for-profit organization. 

501(c)(9)

84. Nonprofit organizations of type 501(c)(9) are voluntary employees beneficiary associations, which provide payment of life, sickness, accident or other benefits to members. 

(Source: International Revenue Service)

These are organized by employees. 

501(c)(10)

85. Nonprofit organizations of type 501(c)(10) are domestic fraternal societies and associations, which devote their net earnings to charitable, fraternal and other specified purposes, but NOT to provide life, sickness, or accident benefits to its members. 

(Source: International Revenue Service)

These distinctions might seem minor in terms of the overall nonprofit definition, but they are actually important. 

501(c)(11)

86. A non-business entity of type 501(c)(11) is a teachers' retirement fund association. 

(Source: International Revenue Service)

Considering the low salaries (and therefore low Social Security contributions) of many American teachers, they fulfill an important role. 

501(c)(12)

87. A not-for-profit organization of type 501(c)(12) is a benevolent life insurance association, an irrigation company, a telephone company, etc., with  a mutually beneficial nature. 

(Source: International Revenue Service)

Where there is unity, there is victory. 

501(c)(13)

88. Nonprofit organizations of type 501(c)(13) are tax exempt cemetery companies. 

(Source: International Revenue Service)

Throughout history, burial grounds have been seen as a public good in many societies. 

501(c)(14)

89. Nonprofit organizations of type 501(c)(14) are state-chartered credit unions and mutual reserve funds organized under nonprofit legislation. 

(Source: International Revenue Service)

Credit unions are an important part of banking in many states. 

501(c)(15)

90. Nonprofit organizations of type 501(c)(15) are mutual insurance companies or associations which provide insurance to members substantially at cost. 

(Source: International Revenue Service)

In other words, they are tax exempt and don’t aim to make a profit. 

501(c)(16)

91. Nonprofit organizations of type 501(c)(16) are cooperative organizations to finance crop operations, also in conjunction with activities of marketing or purchasing associations. 

(Source: International Revenue Service)

In the past agriculture was a very important part of the US economy, so types of non profit organizations like agricultural nonprofits were prominent.

501(c)(17)

92. Nonprofit organizations of type 501(c)(17) are nonprofits in the US that are supplemental unemployment benefit trusts. 

(Source: International Revenue Service)

They provide valuable help to many unemployed people in the United States. 

501(c)(18)

93. Nonprofit organizations of type 501(c)(18) are nonprofits in the US that are employee funded pension trusts created before June 25, 1959. 

(Source: International Revenue Service)

They were, in many senses, pioneers in the retirement sphere.

501(c)(19)

94. Nonprofit organizations of type 501(c)(19) are nonprofits in the US that are organizations of past or present members of the armed forces. 

(Source: International Revenue Service)

Considering the size of the US Armed Force, these organizations are prominent. 

501(c)(21)

95. Nonprofit organizations of type 501(c)(21) are black lung benefit trusts, funded by coal mine operators to satisfy their liability for disability or death due to black lung diseases. 

(Source: International Revenue Service)

This is one of the more interesting different types of nonprofits. Coal mining is a dangerous industry, and was even more dangerous in the past, when many of these liabilities arose.

501(c)(22)

96. Nonprofit organizations of type 501(c)(22) are withdrawal liability payment funds, which provide funds to meet the liability of employers withdrawing from a multiemployer pension fund.

(Source: International Revenue Service)

Through them, employees don’t suffer due to changes in company policy. 

501(c)(23)

97. Nonprofit organizations of type 501(c)(23) are veterans' organizations created before 1880, to provide insurance and other benefits to veterans. 

(Source: International Revenue Service)

Many of them were founded by Civil War veterans. They do not pay income tax.

501(c)(25)

98. Nonprofit organizations of type 501(c)(25) are title-holding corporations or trusts with multiple parent corporations, which hold titles and pay over income from property to 35 or fewer parents or beneficiaries. 

(Source: International Revenue Service)

They are charitable entities which help good causes through their property income.

501(c)(26)

99. Nonprofit organizations of type 501(c)(26) are state-sponsored organizations under nonprofit legislation providing health coverage for high-risk individuals. 

(Source: International Revenue Service)

Medicare and Medicaid do not cover everyone, so these organizations have a valuable purpose. 

501(c)(27)

100. Nonprofit organizations of type 501(c)(27) are state-sponsored workers' compensation reinsurance organizations. 

(Source: International Revenue Service)

These are created under the basic rules of nonprofit organization and  help workers get compensation after workplace accidents. 

501(c)(28)

101. Nonprofit organizations of the type 501(c)(28) are national railroad retirement investment trusts, which manage and invest the assets of the Railroad Retirement Account. 

(Source: International Revenue Service)

They're a legacy of the former great importance of railroads to the American economy, and they meet the non profit definition.

501(c)(29)

102. Nonprofit organizations of type 501(c)(29) are qualified health insurance issuers which have received a loan or grant under the CO-OP program. 

(Source: International Revenue Service)

These were created under the Affordable Care Act. They aren’t global charity organizations, but they still help a lot of people. 

4947(a)(1)

103. Nonprofit organizations of type 4947(a)(1) are non-exempt charitable trusts. 

(Source: International Revenue Service)

Such a charity trust is not tax exempt. 

Other type of nonprofit organizations

104. Advocacy groups are organizations formed to influence the legislations or government policies on particular issues. 

(Source: International Revenue Service)

Advocacy groups do not classify as charitable organizations and as such cannot claim tax exemption under section 501(c)(3). They are not charitable entities. 

105. Membership Organizations are set up for the benefit of the members of the organization as opposed to a public charity that works for a community. 

(Source: International Revenue Service)

They do not meet the key aspects of nonprofits. Examples of membership organizations are veteran’s groups or Trade Associations.

106. Recreational clubs are dedicated to providing recreation facilities and platforms for their members. 

(Source: International Revenue Service)

Examples of  recreational clubs are country clubs or sports clubs. They do not rely on private charitable contributions. 

107. Auxiliary organizations are set up as a subsidiary or as a support organization to a parent organization. 

(Source: International Revenue Service)

The parent organization of auxiliary organizations may be a ‘for-profit’ or a ‘not-for-profit’ organization.

108. Employee benefit funds are organizations which may or may not be supported by the employer of the organization but are established with the prime objective to formulate plans and raise funds for employee benefits. 

(Source: International Revenue Service)

These types of nonprofits are not labor unions, nor are they charitable entities. 

FAQs

Q: How to use Google for nonprofits?

A: Here is a guide to Google for Nonprofits which may be of use.  

Q: How do nonprofits pay their staff*[9?

A: As mentioned above, nonprofits can gain money through many means, including member contributions, government grants, private donations, and investments. 

Q: How to start a nonprofit organization? How to create a nonprofit?

A: The National Council of Nonprofits has a great guide here. The three key aspects are to do your research, incorporate, and file for tax exemption. 

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  85. International Revenue Service
  86. International Revenue Service
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