Despite having special tax advantages in other respects, nonprofits typically must pay employment taxes and abide by state and federal workplace rules in the same way as for-profit organizations. Not-for-profits need not have such an orientation and may exist simply to serve their membership rather than society at large. As mentioned, nonprofits must offer some social benefit and provide goods or services. A nonprofit organization is a non-business entity that uses its revenue to further a mission, purpose, or social cause. "An effective non-profit manager must try to get more out of the people he or she has," wrote Peter F. Drucker in Managing the Non-Profit Organization. The organizational structure is the core of every nonprofit organization. 501(c)(3) covers charitable organizations, one of 29 types of non-profit organizations covered by subsection 501(c) of the IRC for tax-exempt status. This person works closely with the Nonprofit Director and Nonprofit Executive Director and reports to the nonprofit board members. The non- profit making enterprises have been forced to apply basic financial management techniques in order to survive in a world, where the profit making organizations are looming at a faster rate. The Internal Revenue Service must approve the tax-exempt status of all nonprofit organizations except churches. Examples of nonprofit organizations are – Hospitals, schools, etc. 501(c)(3) covers charitable organizations, one of 29 types of non-profit organizations covered by subsection 501(c) of the IRC for tax-exempt status. Nonprofit management shares many of the same challenges as leading a for-profit business. In general, both organization types are tax-exempt, as in the income they earn is not subject to tax. By definition, the nonprofit sector operates in the humanitarian goals and objectives space. Their success is also measured primarily by how well they render the service. A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. This often requires a dedicated CIO and accounting team. Nonprofit organization managers plan out and coordinate outreach campaigns, organizing events, fundraising initiatives, and public relations for a nonprofit. Non-profit organizations are often used for trusts, cooperatives, advocacy, charity, environmental and religious groups. A qualified charitable organization is a nonprofit organization that qualifies for tax-exempt status according to the U.S. Treasury. This is especially the case with those nonprofits that receive large amounts of money and handle multiple projects across the breadth of the country. Further, the members of the nonprofits should be on the board as executive members. to provide service to members and people. Further, the fact that the government monitors the performance of the nonprofits means that there needs to be accountability and financial due diligence done periodically. Discover more about what it means to be tax exempt here. Exemption Requirements -- 501(c)(3) Organizations, Exempt Purposes -- Internal Revenue Code Section 501(c)(3), The Restriction of Political Campaign Intervention by Section 501(c)(3) Tax Exempt Organizations. A non-profit organisation, as the name suggest is a legal organisation whose primary purpose is to promote public good rather than making profit. Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects. 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