To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.
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A Non Profit organization (NPO) is a business entity where making a profit is not a primary mission. Typically, Non Profits are engaged in charitable, educational, religious, or artistic activities of public or private interest. Since Non Profit organizations cannot distribute profit to their directors, officers, or members (those who participate in the management of the Non Profit) any income generated by the Non Profit must ultimately go back into the organization. However, Non Profits can hire and pay staff to carry out operational and administrative functions.
(From Business.Gov)
If you care about nonprofits and the work they do, then you're affected by what GuideStar does—even if this is your first visit to www.guidestar.org. You see, we gather and publicize information about nonprofit organizations. Our reach is far and wide. Our database is broad and deep.
GreatNonprofits is a place to find, review, and talk about great -- and perhaps not so great -- nonprofits.
If you have direct experience with a nonprofit, share your knowledge and help other people discover trustworthy nonprofits that are making a difference.
An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes.
Religious.
Charitable.
Scientific.
Testing for public safety.
Literary.
Educational.
Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment; however, see Amateur Athletic Organizations , later in this chapter).
The prevention of cruelty to children or animals.
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Raising the Voice of Michigan Nonprofits
From the Michigan Department of Energy, Labor & Economic Growth
NEW offers nonprofits in southeast Michigan resources, technology, and services to meet the challenges of doing more with less. We also work with partners to deliver NEW'S programs outside of southeast Michigan.
The questions found at this link will help you determine if an organization is eligible to apply for recognition of exemption from federal income taxation under section 501(a) of the Internal Revenue Code and, if so, how to proceed.