A group, organization, institution or corporation formed to provide goods and/or services for a charitable, educational, religious, literary or scientific purpose. Nonprofits' assets are usually donated by companies, foundations or individuals who do not expect to be repaid. These contributions are tax deductible.
If a nonprofit meets the requirements of the Internal Revenue Service's Code, section 501(c)(3), it can obtain tax-exempt status, and does not pay federal or state income taxes.