Nonprofit Sector 101

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Nonprofit sector collectively describes the institutions and organizations in American society that are neither government nor business. Because nonprofit organizations offer programs and services that otherwise would have to be provided by the government, the government excuses them from the taxes that for-profit businesses must pay.

In this article, we review five types of tax-exempt organizations relevant to charitable giving: traditional public charities, gross receipts public charities, supporting organizations, public safety organizations, and private foundations.

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