ETAX990NBLOG

Difference between Nonprofit and Tax-Exempt Status

The terminologies “Nonprofit” and “Tax Exempt Status” used to define the professional and trade associations is often confusing. It is necessary to clarify both of the two key terms. Organizations are usually controlled and operated as both tax-exempt and non-profit entities. The status of the non-profit refers to the incorporation status under the law of the state, and the tax-exempt status states to the federal income tax exemption under the Internal Revenue Code (IRC). What are the Differences between...