Nonprofit Corporation

A nonprofit corporation is created under a state's nonprofit corporation law by filing articles of incorporation, just like a for-profit corporation. The state search shows it as a nonprofit entity with its own status and annual or biennial report schedule.

Two separate checks

Being a nonprofit corporation in state records does not make an organization tax-exempt. Exemption under section 501(c)(3) or another section is granted by the IRS. To verify a charity fully, check both records.

Is a nonprofit organization a business?

Legally, yes in the sense that matters for a business search: a nonprofit corporation is a registered entity that can sign contracts, hire staff and sell goods or services. The difference is that it has no owners who take profits. Its earnings stay with the organization, and its officers and directors are listed on its public Form 990 rather than as shareholders.

Are nonprofits C or S corporations?

Neither, in practice. A nonprofit corporation has no shareholders, so it cannot elect S corporation status, and once the IRS recognizes it as exempt it is taxed under the exempt organization rules rather than as an ordinary C corporation. Income from an unrelated trade or business is still taxed, at corporate rates, and reported on Form 990-T. Compare the structures in business entity types, and find a charity's EIN with the EIN lookup.

Pennsylvania charges nonprofits nothing for its annual report; see the Pennsylvania guide. A nonprofit that misses filings can be dissolved like any other entity.

Related: EIN lookup, business entity types.