A nonprofit is an organization that has been granted tax-exempt status by the Internal Revenue Service because it furthers a social cause and provides a public benefit. There are 1.3 million charitable nonprofits across the United Sates, according to the National Council of Nonprofits.
Nonprofits are sometimes called NPOs or 501(c)(3) organizations based on the section of the tax code that permits them to operate. These organizations cannot engage in political campaigning. In addition, they pay no tax on donations received or money earned through fundraising activities and must make their financial and operating information public.
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