### Question
How is the term nonprofit organization defined?


### Answer
The term **nonprofit organization** is defined in *34 U.S.C. § 10263* as the following:

> an organization that is described in section 501(c)(3) of title 26 and is exempt from taxation under section 501(a) of such title

#### Citation:
  - *34 U.S.C. § 10263*
  - Heading: **Subtitle I-Comprehensive Acts > CHAPTER 101-JUSTICE SYSTEM IMPROVEMENT > SUBCHAPTER IX-FUNDING**

