Nonprofit organizations are not expected to pay certain taxes because it is a company that doesn't pursue the aim of making a profit or engaging in operations for the public or private interest.
Nonprofit organisations must adhere to certain requirements in order to be exempt from federal taxes. As a non-taxable entity, nonprofits—which can include private organizations and churches—can raise money more easily.
Nontaxable NGOs are more likely to receive contributions from individuals and other groups since they can lower their own tax obligations. A nonprofit organisation must pay income taxes on any funds used for operations that are outside to their primary mission.
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