US Non Profits

Pricing for US Non Profit Organizations

Eligibility Requirements

To be eligible to license BackupEDGE from the Non Profit price list, organizations must be a Non Profit Organization as defined below.

Non Profit Organizations - What are they, and how are they defined?

Non Profit Organizations (The Non Profit Sector) are institutions and organizations in American society that are neither government nor business. Other names often used to categorize non-profit organizations include the not-for-profit sector, the third sector, the independent sector, the philanthropic sector, the voluntary sector or the social sector. Outside the United States, nonprofits are often called non-governmental organizations (NGOs) or civil society organizations.

The Non Profit sector in the United States is vast and diverse. It includes more than a million organizations that spend nearly $500 billion each year. About six percent of all organizations in the U.S. are nonprofits. Section 501(c) of the tax code, which outlines the types of organizations eligible for tax exemption, lists more than 25 classifications of nonprofits.

Major subcategories within the non-profit sector include:

Charities. Non Profits that are exempt under Section 501(c)(3) are often called charities; examples are Non Profit schools and hospitals, museums, scholarship foundations, social service organizations, public television and radio stations and youth sports organizations. A non-charity such as a union is also considered a charitable organization under the law if it employs a charitable appeal in its solicitations from the public.

Foundations. Foundations are also 501 (c)(3) Non Profits and are one of the most complex components of the Non Profit sector. There are nearly 40,000 foundations in the United States. The most common are:

  • Private foundations usually have a single source of funding (an individual, a family, or a business), and use income from investments to make grants to other nonprofit organizations. The Ford Foundation, The Carnegie Corporation, and the W.K. Kellogg Foundation are well known examples. Private foundations are subject to more stringent regulation and reporting requirements than other types of nonprofits.
  • Community foundations pool the resources of many donors and focus their grant making on a particular city or region. The Cleveland Foundation and the New York Community Trust are examples of community foundations. The IRS classifies community foundations as publicly supported charities, not private foundations.
  • Corporate foundations are private foundations that receive funding from and make grants on behalf of a corporation (the Metropolitan Life Foundation and the American Express Foundation are examples). Many corporations have in-house corporate giving programs instead of or in addition to corporate foundations.
  • Operating foundations use the bulk of their resources to carry out their own charitable programs, rather than by making grants to other nonprofits. The Carnegie Endowment for International Peace and the Getty Trust are examples of operating foundations.

Social Welfare Organizations. Non Profits such as the National Association for the Advancement of Colored People, the National Rifle Association, and the National Organization for Women are exempt section 502(c)(4) of the tax code. These Non Profits are often called social welfare or advocacy organizations. Contributions to 501(c)(4) organizations are not tax-deductible, and 501 (c)(4) Non Profits have greater latitude to participate in legislative advocacy, lobbying, and political campaign activities.

Professional and Trade Associations. Chambers of commerce, business leagues, and other organizations that promote the business or professional interests of a community, an industry, or a profession generally qualify for tax-exemption under Section 501(c)(6) of the tax code. Although contributions to these organizations are not tax-deductible, membership dues may be deductible as business expenses. The Non Profit sector serves as a forum for the discussion and dissemination of new ideas, an efficient vehicle for delivering social services, and a guardian of our environment, values, and heritage.

Documentation Requirements:

As a minimum the Non Profit organization must provide an EIN #, organization name, and head office address. The Non Profit organization must also have a form 990 on file, this can be checked by going to the website and reviewing the GuideStar© Non Profit database.

Products must be registered in correct name of the Non Profit organization.

GuideStar is the registered trademark and operating name of Philanthropic Research, Inc, a 501(c)(3) Non Profit organization. Copyright 2003, Philanthropic Research, Inc. All rights Reserved.