### Question
How does the law define nonprofit entity?


### Answer
Under *40 U.S.C. § 15101*, **nonprofit entity** is defined as:

> any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code that has been formed for the purpose of economic development

#### Citation:
  - *40 U.S.C. § 15101*
  - Heading: **SUBTITLE V-REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT > CHAPTER 1-GENERAL PROVISIONS**

