Non-Profit Organization Law and Legal Definition
According to 2 CFR 230.25 (Title 2, Grants And Agreements; Subtitle A, Office Of Management And Budget Guidance For Grants And Agreements; Chapter II, Office Of Management And Budget Circulars And Guidance; Part 230, Cost Principles For Non-Profit Organizations (Omb Circular A-122)) the term “Non-Profit Organization” means “any corporation, trust, association, cooperative, or other organization which:
(1) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest;
(2) Is not organized primarily for profit; and
(3) Uses its net proceeds to maintain, improve, and/or expand its operations. For this purpose, the term "non-profit organization" excludes colleges and universities; hospitals; State, local, and federally-recognized Indian tribal governments; and those non-profit organizations which are excluded from coverage of this part in accordance with § 230.20(c).
(b) Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the part and its Appendices. Generally this permission will be in writing. Where an item of cost requiring prior approval is specified in the budget of an award, approval of the budget constitutes approval of that cost.”
