Tax-Exempt Status

Not-for-Profit Organization (NFP)
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.
Qualified Charity
A Qualified Charity is an organization that has applied for and received tax-exempt status under the Internal Revenue Code, allowing it to receive tax-deductible contributions from donors.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.