Nonprofit organizations are tax-exempt businesses that are deemed to operate in the public benefit. The federal government encourages people to donate to such organizations by allowing them to deduct their donations from their taxable incomes. Qualifying nonprofit organizations fall under one of five categories.
Nonprofit charitable organizations might include homeless shelters, disability organizations, youth programs, hospitals, health care clinics, animal rights groups, military groups, human rights groups and emergency relief groups such as the Red Cross.
Nonprofit educational organizations might include schools, colleges and universities, child care centers, museums, conservation groups, zoos and health organizations such as the American Heart Association.
Nonprofit scientific organizations might include cancer research groups, biology groups, chemistry groups, environmental groups, astronomy groups, engineering groups and medical professional groups such as the American Nurses Foundation.
Nonprofit religious organizations might include churches, mosques, synagogues, seminaries, church relief groups and charitable groups with religious principles such as the Salvation Army.
Nonprofit literary or artistic organizations might include symphonies, orchestras, theater groups, art galleries, writers’ organizations, poetry organizations and other youth music groups such as Drum Corps International.
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