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For Profit Subsidiaries

Separate, proprietary organizations established by and under the administrative and programmatic control of a nonprofit for the purpose of generating income from the sale of merchandise or performance of a service that is related or unrelated to the nonprofit’s exempt purpose. The organization can pursue trade or business activities without risking its tax exempt status but must pay taxes on earnings as required by law. Taxable activity of nonprofits varies considerably and can take many forms including limited liability companies, partnerships, trusts or corporations.

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Fundraising Campaigns

Foundations and other funding organizations that provide monetary support for the organized efforts of nonprofit agencies to secure revenue or gifts on an annual basis or throughout the year.

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Program Development Funds

Foundations and other funding organizations that provide monetary support which recipient agencies may use to fund the establishment or expansion of specific projects or services.

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Wage Subsidy Funds

Foundations and other funding organizations that provide monetary support that can be used to improve the salary and benefit levels of employees working in specified positions, settings or industries. The funding is often intended to help stabilize staffing by supporting more reasonable wages without having a direct impact on fees paid by service recipients.

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The above terms and definitions are part of the Taxonomy of Human Services, used here by permission of INFO LINE of Los Angeles.


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