Nonprofit organizations in the United States

Nonprofit organizations in the United States
Name	Nonprofit organizations in the United States
Formation	Colonial era–present
Type	Nonprofit corporation, charitable organization
Purpose	Philanthropy, advocacy, service provision
Region	United States

Nonprofit organizations in the United States are private, mission-driven entities that operate without distributing profits to private owners, engaging in charitable, educational, religious, scientific, and social purposes. They encompass a wide range of institutions from hospitals and universities to foundations, advocacy groups, and service providers, interacting with legal regimes such as the Internal Revenue Code and institutions including the Internal Revenue Service and state secretaries of state. Their roles intersect with major actors such as Bill & Melinda Gates Foundation, American Red Cross, United Way, Sierra Club, and The Rockefeller Foundation.

History and development

Philanthropic activity in the colonial period tied to institutions like Harvard College and Yale University evolved into 19th-century voluntary associations exemplified by American Bible Society, American Tract Society, and Salvation Army during the era of Second Great Awakening and industrialization centered in cities such as New York City, Philadelphia, and Boston. The Progressive Era saw organizations like American Red Cross, YMCA, and Carnegie Foundation respond to urban poverty and public health crises, while 20th-century philanthropy expanded with the establishment of major private foundations such as Rockefeller Foundation, Ford Foundation, and Gates Foundation alongside social reform movements including Civil Rights Movement, women's suffrage, and labor unions. After World War II, higher education and hospital systems like Johns Hopkins Hospital and Massachusetts Institute of Technology grew under tax-exempt status and federal programs like the G.I. Bill, and late 20th- and early 21st-century developments involved digital-era groups such as Wikipedia-associated nonprofits and advocacy networks linked to events like Occupy Wall Street and policy debates over the Affordable Care Act.

Legal and regulatory framework

Nonprofits commonly incorporate under state law via statutes like those of New York, Delaware, and California and secure federal tax-exemption under sections such as 26 U.S. Code § 501(c)(3), while other statuses include 501(c)(4), 501(c)(6), and 501(c)(7). The Internal Revenue Service enforces rules on political activity and deductibility of gifts, with cases adjudicated in courts including the Supreme Court of the United States, and shaped by precedents like Citizens United v. FEC and litigation involving groups such as Americans for Prosperity. State attorneys general, exemplified by offices in New York Attorney General and California Attorney General, oversee charitable solicitation and fiduciary duties, as reflected in statutes like the Uniform Prudent Management of Institutional Funds Act and reporting requirements like the Form 990. Regulatory responses to scandals involving organizations such as Enron-adjacent foundations or fraud cases have prompted reforms and enforcement actions by agencies including the Federal Trade Commission and Securities and Exchange Commission when financial instruments or disclosures intersect.

Types and classifications

Nonprofits include public charities such as American Cancer Society, private foundations like The Rockefeller Foundation, social welfare organizations such as AARP, trade associations exemplified by Chamber of Commerce of the United States, professional societies like American Bar Association, labor unions including the AFL–CIO, religious organizations such as The Church of Jesus Christ of Latter-day Saints, and cultural institutions including Smithsonian Institution and Metropolitan Museum of Art. Academic and research institutions include Harvard University, Stanford University, and national labs linked to entities such as Brookings Institution and policy centers like Center for American Progress. Health systems and hospitals include Mayo Clinic and Cleveland Clinic, while service organizations span Habitat for Humanity and Feeding America. Cross-border and international NGOs include Doctors Without Borders, Oxfam, and World Wildlife Fund (US), which coordinate with domestic groups on humanitarian crises like responses to Hurricane Katrina and global health initiatives tied to World Health Organization partnerships.

Funding and finance

Revenue streams encompass individual giving through major donors such as Warren Buffett and fundraising events tied to celebrities like Oprah Winfrey, corporate philanthropy from firms such as Microsoft and Google, grants from foundations including Bill & Melinda Gates Foundation and government contracts from agencies like Department of Health and Human Services and United States Agency for International Development. Endowments held by institutions such as Yale University and Princeton University produce investment returns managed by boards and subject to rules under Uniform Management of Institutional Funds Act and regulatory guidance from bodies like Securities and Exchange Commission. Crowdfunding platforms and digital fundraising leverage intermediaries including GoFundMe, DonorsChoose, and social media channels such as Facebook and Twitter for microgiving, while financial oversight must guard against fraud exemplified by cases prosecuted by Federal Bureau of Investigation.

Governance and accountability

Governance structures feature volunteer boards of directors, executive officers, and compliance officers; prominent corporate governance models draw lessons from institutions like The Ford Foundation and Carnegie Corporation of New York. Fiduciary responsibilities and transparency are enforced via disclosures like the Form 990, audits by certified public accountants, and watchdog organizations such as Charity Navigator, GuideStar, and BBB Wise Giving Alliance. Conflicts of interest, self-dealing, and executive compensation controversies have arisen in entities including high-profile nonprofits and prompted scrutiny in media outlets like The New York Times, The Washington Post, and broadcast networks such as PBS. Accountability mechanisms include donor-advised funds through intermediaries like Fidelity Charitable, regulatory oversight by state attorneys general, and shareholder-activism analogues among institutional funders such as university endowment committees.

Impact, advocacy, and public policy

Nonprofits influence public policy through advocacy groups such as American Civil Liberties Union, Sierra Club, National Rifle Association of America, and Planned Parenthood. Policy research centers including Brookings Institution, Heritage Foundation, and Cato Institute produce studies that shape legislative debates in bodies like the United States Congress, executive rulemaking in agencies such as the Environmental Protection Agency, and international negotiations at forums like the United Nations. Service delivery organizations play roles in disaster response with groups like Federal Emergency Management Agency coordination partners and humanitarian NGOs during crises such as Haiti earthquake (2010) relief. Evaluation and impact assessment draw on methodologies from scholars at Harvard Kennedy School and organizations like Independent Sector, with metrics reported to stakeholders including philanthropists, beneficiaries, and regulators.

Category:Non-profit organizations based in the United States