Exempt Organization
/ɪɡˈzɛmpt ˌɔːrɡənəˈzeɪʃən/
Definitions
- (n.) A legal entity recognized by tax authorities as exempt from federal income tax under specific statutory provisions.
The nonprofit was registered as an exempt organization under section 501(c)(3) of the Internal Revenue Code.
- (n.) An organization excluded from certain regulatory, reporting, or legal constraints typically applicable to other entities.
As an exempt organization, it faced fewer disclosure requirements than a for-profit corporation.
Forms
- exempt organization
- exempt organizations
Related terms
See also
Commentary
Use precise statutory references when describing exempt organizations, as the scope of exemption varies by jurisdiction and tax code section.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.