Organizations

A "nonprofit" refers to a type of business or corporation, which is organized under certain laws that forbid the distribution of profits to owners (stockholders). ("Profit" being the term for a surplus of revenues over expenditures).

Indiana has provisions for forming nonprofit corporations. The IRS gets involved because corporations are typically required to pay federal income taxes on their net profit; unless the organization files for tax exemption under Section 501 (IRS). Section 501(c)(3) describes a non-profit as serving charitable, religious, scientific or educational purposes.

The key here is that tax-exempt nonprofit organizations are a business. The community is depending upon non-profits to be good stewards of funds received to operate programs and services that carry out their mission and improve the quality life for people. Therefore, transparency and accountability is an important component of running a non-profit organization in 2011.

Everything in a non-profit is ultimately directed to serving clients or the “customers”. Non-profit organizations help shape the quality of life for our community. They help drive our economy and maximize resources to ensure that residents have what they need to meet basic needs and actively participate in society.

Thank you to all the social service agencies, faith-based organizations, and community leaders who are making Fort Wayne, Allen County and northeast Indiana a great place to live.