Chapter 5 Managing the Nonprofit as Instrument of Groups, Business, and Politics

Nonprofit organizations are given tax exemption under various titles of the tax code. See Table 5.1. Each title represents a different purpose for the organization, some significant differences in operating rules and tax exemption as compared to the 501(c)(3)s.

The common characteristic of these other tax-exempt nonprofits is that they do not serve public welfare directly, but provide a service to individual members or entities which, in their roles, serve the public even at exorbitant fees and for-profit. These nonprofits can be said to serve the public indirectly and do so through their membership that share a common interest around which the nonprofit is formed. ...

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