Charitable Organizations

Charitable organizations are organizations that have an educational, cultural, religious, or social welfare or other purpose that is defined by law. In [Page 198]the United States, they are generally governed by both state law to establish the organization and by federal law to assess the charitable purpose and tax-exempt eligibility. It is possible to be a nonprofit organization (or nonprofit corporation or limited liability company [LLC]—these terms are used interchangeably in this entry and are in common use today, although there are some differences) that is recognized as such under the laws of a state but not be a tax-exempt organization under federal law. Becoming a tax-exempt charitable organization is a two-government process. Many food organizations that work to fight hunger, to create sustainable food ...