What Are the Five Most Common Types of Non Profit Organizations? Most Common Nonprofit Organization

Charities are the most common type of nonprofit organization. Charities refer to organizations that operate for:

  • Religion
  • Education
  • Science
  • Literature
  • Public safety testing
  • Amateur sports
  • Preventing cruelty to children or animals

Other common nonprofits:

  • Public charities
  • Foundations
  • Social advocacy groups
  • Trade organizations

Nonprofits:

  • Are referred to as non-stock corporations or 501(c)(3) organizations
  • Must pay employment taxes for staff
  • Enjoy federal tax benefits on income
  • Do not distribute profits to shareholders or owners
  • Do not issue stock

Within 501(c)(3) organizations, there are:

  • Private foundations
  • 509(a)(1)
  • Religious
  • Scientific
  • Literary
  • Over 1 million charities in the U.S.
  • 75% of nonprofits are public charities, foundations, advocacy groups or trade organizations
  • These contribute 75% of the $3.67 trillion in revenue and expenses reported for the whole sector
  • Federal credit unions are 501(c)1 organizations
  • 501(c)1 organizations are not required to apply for tax-exempt status or file annual tax returns

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