Fund raising involves efforts to solicit contributions from individuals or organizations for nonprofit entities with educational, medical, religious, political, charitable, or other stated purposes.
An organization that provides goods or services with a policy that no individual or group will share in any profits; where a surplus is generated, this must be used to further the goals of the organization. Examples are charities, political organizations, housing associations, and educational institutions.
A tax-exempt social club is organized for pleasure, recreation, and other nonprofitable purposes where substantially all activities are for such purposes. None of the net earnings benefit any private shareholders.
