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


### Answer
The term **private nonprofit organization** is defined in *15 U.S.C. § 656* as the following:

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

#### Citation:
  - *15 U.S.C. § 656*
  - Heading: **CHAPTER 14A-AID TO SMALL BUSINESS**

