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


### Answer
The term **nonprofit entity** is defined in *40 U.S.C. § 15101* as the following:

> 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**

