“Not-for-profit” organization, as the term is used by the Humanities Indicators, refers to entities that are classified as tax-exempt public charities by the Internal Revenue Service. Public charities are a subset of 501(c)(3) organizations (tax-exempt entities) that meet additional criteria specified in Section 509(a) of the tax code. This section specifies two types of public charities: Section 509(a)(1) organizations, which are not-for-profit organizations that receive their public support primarily from gifts, grants, and contributions from a broad group of people; and Section 509(a)(2) organizations, which obtain their revenues from these sources, as well as in the form of fees for their services.
