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Though it has no internationally recognized legal definition, an NGO generally refers to an organization that operates independently from any government as a charity. In the United States, any group seeking non-profit, tax exempt (503(c)) status must register with their local government as well as the Internal Revenue Service (IRS).
Nonprofit charitable organizations are curious institutions in American law, defined more by what they arenât than what they are, because of the way the Internal Revenue Code has evolved. If you think about it, a nonprofit institution is: not for profit, exempt from taxes, and not a private foundation. So what does this mean, and how does it work? Terminology of 501(c)(3) Organizations. Nonprofit (or not-for-profit). This term doesnât mean that an organization canât take in more money than it spendsâwhat we usually think of as âprofit.â If that were the requirement, most, if not all, nonprofits would soon fail.