5-564: A community development corporation ( CDC ) is a not-for-profit organization incorporated to provide programs, offer services and engage in other activities that promote and support community development . CDCs usually serve a geographic location such as a neighborhood or a town . They often focus on serving lower-income residents or struggling neighborhoods. They can be involved in a variety of activities including economic development , education , community organizing and real estate development . These organizations are often associated with
10-426: A NPO as they are not formed explicitly for the public good as an NPO must be, and NFPOs are considered "recreational organizations", meaning that they do not operate with the goal of generating revenue as opposed to NPOs. An NFPO does not have the same obligation as an NPO to serve the public good, and as such it may be used to apply for tax-exempt status as an organization that serves its members and does not have
15-437: Is a legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives. An NFPO does not earn profit for its owners, as any revenue generated by its activities must be put back into the organization. While not-for-profit organizations and non-profit organizations (NPO) are distinct legal entities, the terms are sometimes used interchangeably. An NFPO must be differentiated from
20-657: The development of affordable housing . The first community development corporation in the United States was the Bedford Stuyvesant Restoration Corporation . In some jurisdictions in the United States, a CDC is by definition targeted towards direct investment in the community, while a "community development advocacy organization" is a category eligible for recognition as a tax-exempt charity or service organization. Not-for-profit A not-for-profit or non-for-profit organization ( NFPO )
25-530: The goal of generating profit. An example of this is a sports club , which exists for the enjoyment of its members and thus would function well as an NFPO, with revenue being re-invested into improving the organization. These organizations typically file for tax exemption in the United States under section 501(c)(7) of the Internal Revenue Code as social clubs. Common ventures for which NFPOs are established include: Charities, as NFPOs, function under
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