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The term "nonprofit" has little to do with how much money an organization makes over and above its expenses. Rather it's about what happens to the funds that remain after the bills are paid. The IRS recognizes organizations as nonprofits if they're formed to serve the public interest, rather than to make a profit. Those that meet the stringent requirements don't have to pay federal corporate income taxes. So, what exactly does it mean to serve the public interest? Most of us are familiar with organizations like the Red Cross that help the needy, but trade or community development organizations can also qualify, as can many private
hospitals and universities. Depending on the exact IRS classification, donations to these orgs may also be tax-deductible. The Web is chock-full of nonprofit resources. Whether you want to see if that call for donations is legit, read about the latest nonprofit news, or start your own nonprofit, the Web is a great place to start.
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