NEXT IN THIS TOPIC

Special Reports

What’s the difference between a nonprofit and a 501(c)(3)?

April 2, 2013 | By Robyn Guilliams

When an organization wishes to be classified as “nonprofit,” it must register with a state—usually the state in which it operates. Every state has different classifications for nonprofit organizations. For instance, New York and some other states have a type of business classified as a “Not-For-Profit Corporation.” Other states have corporations that are classified as “Non Stock Corporations.” What all of these corporations have in common is that they do not have any owner, and the business of the organization is run by a board of directors. 

Once an organization formally registers as a nonprofit company with the state, it can request federal tax-exempt status with the Internal Revenue Service. If granted, the organization will not have to pay federal taxes on its income (provided that income is related to the organization’s “charitable mission”), and donations made generally will be tax deductible for the donor.
So, all 501(c)(3) organizations are nonprofits. But not all nonprofits are 501(c)(3)s!

WHO'S BLOGGING

 

WHO ELSE IS BLOGGING

Law and Disorder by GG Arts Law

Career Advice by Legendary Manager Edna Landau

Munich Times by Andrew Powell

An American in Paris by Frank Cadenhead

NOTED ENDEAVORS
Interviews with musicians who have successfully created their own opportunities.

Read more about this video

 
 

PROFESSIONAL
   GROWTH

ADVERTISEMENT

»

NETWORK

ADVERTISEMENT

»

Updates to artist manager rosters

»

RENT A PHOTO

Search Musical America's archive of photos from 1900-1992.

 

»BROWSE & SEARCH ARCHIVE