Non-profit organizations are entities that are created to carry out activities and transactions for purposes other than the financial gains of shareholders. These organizations can be churches, public schools, charities, clinics and hospitals, political organizations, legal aid societies, voluntary service organizations, labor unions, professional associations, research institutes, museums, and some government agencies. Non-profit organizations are often referred to as non-profit organizations or 501(c)(organizations), depending on the section of the tax code that allows them to operate. In many countries, non-profit organizations can apply for tax exemption so that financial donors can request a refund of income tax paid on donations and so that the organization itself can be exempt from income tax.
For organizations that have a calendar year closing, Form 990 is due on May 15, although the organization can request an extension. Organizations that apply for 501 (c) () status must explicitly state in their organizing documents that they will not participate in any political campaign on behalf of any candidate or incur expenditure for political purposes. Volunteer-led organizations may have little or no labor costs, and these individuals may be driven by a strong sense of community, as opposed to people who strive for personal benefits. Nonprofit organizations or corporations are usually charities or service organizations; they can be organized as a non-profit corporation or as a trust, a cooperative, or they can be purely informal. Despite having special tax advantages in other ways, nonprofit organizations often pay payroll taxes and comply with state and federal labor regulations in the same way as for-profit organizations. In the United States, non-profit organizations are usually formed by constituting the state in which they expect to do business.
A more accurate term to describe most non-profit organizations is “non-profit”, rather than “non-profit”, and is often used in legislation and texts. The IRS, after reviewing the application to ensure that the purpose of the organization meets the conditions to be recognized as a tax-exempt organization (such as a charity), issues a letter of authorization to the non-profit organization granting it tax-exempt status for income tax purposes.
Examples of Non-Profit Organizations Using Digital TechnologyThere are some non-profit organizations that are making very effective use of digital technology to achieve their goals. In fact, the organization must explicitly state in its organization documents that it will not be used for the personal benefit or benefit of its founders, employees, followers, family members or associates. Here are five great examples of non-profit organizations that use digital technology in a creative, innovative and highly effective way:
- The Nature Conservancy: This organization uses digital technology to create interactive maps that allow users to explore their conservation projects around the world.
- The World Wildlife Fund: This organization uses digital technology to create virtual reality experiences that allow users to explore endangered species and habitats.
- The American Red Cross: This organization uses digital technology to create an app that allows users to donate money directly from their phones.
- The Salvation Army: This organization uses digital technology to create an online donation platform that allows users to donate money directly from their computers.
- UNICEF: This organization uses digital technology to create an online platform that allows users to donate money directly from their phones.
Non-profits have become increasingly reliant on digital technology in order to reach more people and raise more funds for their causes.