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


### Answer
The term **nonprofit organization** is defined in *42 U.S.C. § 12704* as the following:

> any private, nonprofit organization (including a State or locally chartered, nonprofit organization) that—


(A) is organized under State or local laws,


(B) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual,


(C) complies with standards of financial accountability acceptable to the Secretary, and


(D) has among its purposes significant activities related to the provision of decent housing that is affordable to low-income and moderate-income persons

#### Citation:
  - *42 U.S.C. § 12704*
  - Heading: **CHAPTER 130-NATIONAL AFFORDABLE HOUSING > SUBCHAPTER I-GENERAL PROVISIONS AND POLICIES**

