Not-for-Profit Organizations: Overview

FEMA recognizes not-for-profits as organizations that operate without the intention of generating profit and are established for various purposes such as charity, education, religion, or public service. These organizations, including educational institutions and not-for-profit hospitals, must be tax-exempt under the Internal Revenue Code and provide essential social services that benefit the community or address specific needs. Examples include religious institutions, educational organizations, health care facilities, and social service agencies.

Electric cooperatives are member-owned, not-for-profit organizations that provide electricity to rural and underserved areas, much like not-for-profit hospitals that focus on community health. Governed by their members, who actively participate in decision-making and elect a board of directors, these cooperatives prioritize affordable and reliable electricity. They also reinvest any excess revenue into improving services, infrastructure, and essential social services within the community. By focusing on local needs, electric cooperatives play a vital role in fostering economic growth and enhancing the quality of life in the communities they serve, similar to how educational institutions contribute to community development.

Not-for-profit hospitals are healthcare facilities that operate without the primary goal of generating profit, instead focusing on providing high-quality medical care and essential social services to the community. Any surplus revenue they generate is reinvested into improving facilities, expanding services, and supporting community health initiatives. These not-for-profit hospitals often provide care to underserved populations, offer charity care, and emphasize medical research and education, similar to educational institutions committed to the public good. Governed by a board of trustees, these hospitals are exempt from certain taxes and are dedicated to serving the community.

FEMA considers schools to be educational institutions that provide primary, secondary, or higher education and are recognized by state education authorities. This includes public and private schools, colleges, universities, and vocational or technical institutions. These essential social services play a crucial role in community resilience and recovery efforts, just like not-for-profit hospitals.

Essential social services are vital institutions that provide critical support to individuals and families. These services encompass programs addressing housing, food assistance, child and elder care, mental health support, and services for individuals with disabilities. Notably, educational institutions and not-for-profit hospitals often collaborate with essential social services providers to ensure the basic needs and overall well-being of communities.