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Researching Nonprofits

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What is a nonprofit?

A group, organization, institution or corporation formed to provide goods and/or services for a charitable, educational, religious, literary or scientific purpose. Nonprofits' assets are usually donated by companies, foundations or individuals who do not expect to be repaid. These contributions are tax deductible. If a nonprofit meets the requirements of the Internal Revenue Service's Code, section 501(c)(3), it can obtain tax-exempt status, and does not pay federal or state income taxes.

According to Candid.org: Generally, "nonprofit" and "not-for-profit" have the same meaning. However, nonprofit, legal, academic communities do make subtle distinctions between the two terms. Although the words can be used differently by different groups, the simplest way to distinguish between them is to think of ‘not-for-profit’ as an activity, like reading a book. The term ‘nonprofit’ refers to an organization that is not intended to make a profit, like an adult literacy group.

In TexasNonprofit Corporations: 

Not all non-profit organizations are filed with the Secretary of State. Many, but not all, non-profit organizations choose to incorporate. A nonprofit corporation is created by filing a certificate of formation with the secretary of state in accordance with the Texas Business Organizations Code ("BOC"). "Nonprofit corporation" means a corporation no part of the income of which is distributable to members, directors, or officers [BOC, Section 22.001(5)]. A nonprofit corporation may be created for any lawful purpose, or purposes permitted by the BOC. Not all nonprofit corporations are entitled to exemption from state or federal taxes.