Nonprofit Definition

The organizations targeted for the project meet the criteria in each of the following categories:

Formality. The organization must have at least a semiformal structure that allows it to be recognized as an independent entity by the general community or "officials" in the field. This criteria is met by at least one of the following conditions:
  • Has obtained IRS tax exempt status.
  • Is legally incorporated as a nonprofit in the State of Indiana.
  • Is included on listings of applicants for public or private grants or contracts.
  • Is included in a published directory of organizations, such as a phone book or "field specific" resource guide.
  • Is considered by key gatekeepers in the field to be an independent, named entity with some level of formal structure such as by-laws and board officers, or its own budget and/or paid staff.
Nonprofit. The organization must be a nonprofit entity that might potentially meet IRS guidelines for tax-exempt status under section 501(c) of the IRS code This definition thereby includes:
  • Those organizations that primarily serve a sacramental function (churches, congregations, synagogues, temples, mosques).
  • Those organizations that are traditionally recognized as providing services of public benefit otherwise, such as arts and cultural organizations, schools or other educational organizations, health service or research organizations, youth development or human service organizations, animal welfare and environmental organizations, civil rights organizations, and community improvement agencies.
  • Private foundations or community foundations whose primary function is to transfer funds to other nonprofit organizations.
  • Advocacy and other organizations engaged in various forms of political activity.
  • Membership organizations that operate primarily for the mutual benefit of their members, such as social, hobby or leisure clubs; labor or agricultural organizations; business, professional, or trade associations; fraternal and veterans organizations; other membership associations, including beneficiary societies, insurance companies, credit unions, and cemeteries.
Private. The organization must be private, not a unit of government, thus excluding public libraries, public universities, public schools, public hospitals, and similar institutions.