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Nonprofit Organizations

In: Property Rights and Managerial Decisions in For-profit, Nonprofit, and Public Organizations

Author

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  • Kathleen A. Carroll

Abstract

Nonprofit organizations, sometimes referred to simply as nonprofits, provide a variety of goods and services to the public. For my purpose here a nonprofit organization is defined by two criteria. First, a nonprofit organization is a private organization and is not part of any government or public sector bureau or agency. Second, a nonprofit organization is a legally prohibited from distributing any earned residual (that is, profit) to any individual or group connected to the organization. This restriction is sometimes referred to as a nondistribution constraint. Nonprofit organizations that meet these two criteria and which provide a charitable or social service may be classified as 501(c)3 or 501(c)4 nonprofits according to the US tax code.

Suggested Citation

  • Kathleen A. Carroll, 2004. "Nonprofit Organizations," Palgrave Macmillan Books, in: Property Rights and Managerial Decisions in For-profit, Nonprofit, and Public Organizations, chapter 7, pages 93-107, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-4809-0_7
    DOI: 10.1057/9781403948090_7
    as

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