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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).
DEFINITION of 'Nonprofit Organization'. A business entity that is granted tax-exempt status by the Internal Revenue Service.Donations to a nonprofit organization are often tax deductible to the individuals and businesses making the contributions.Nonprofit organizations must disclose a great deal of financial and operating information to the public, so that donors can ensure their contributions are used effectively.EFINITION of 'Nonprofit Organization'. A business entity that is granted tax-exempt status by the Internal Revenue Service.