Common terms and where to find more information

Common terms and where to find more information

•   501c3: Reference to the IRS tax code governing nonprofits. Often substituted to indicate a tax-exempt organization.

•   990, 990 N, 990 EZ, 990 PF: Types of federal tax returns for nonprofit organizations.

•   Board of Directors: Team who manages and oversees the organization.

•   Bylaws: An organization’s governing document.

•   Charity Registration: A document providing legal authority to ask for donations.

•   Compliance: Means of ensuring ongoing legal operation.

•   Conflict of Interest Policy (COI): A set of policies preventing personal gain.

•   Corporate Sponsorship: Funds donated by local businesses.

•   Form 1023, 1023 EZ, and 1024: Types of applications for federal tax-exempt status.

•   Grant Funding: Funds issued by a private foundation for a specific purpose.

•   Governance: Ongoing operation of the organization.

•   Incorporation: Document establishing a legal entity in the state of operation.

•   Letter of Determination: Sent by the IRS to indicate an organization’s tax-exempt status.

•   Personal Donations: Funds donated by individuals.

•   Program Fees: Charges for services or programing provided by the organization.

•   Sales Tax Exemption: A document providing exemption from sales taxes.

•   State Tax Exemption: A document providing exemption from state corporate taxes.

•   Strategic Plan: A set of shared responsibilities and goals for the organization.


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