**In order to clear up any confusion, an organization or a company cannot
have one without the other.  You cannot declare yourself "non-profit"
WITHOUT securing "tax exempt" status.  The IRS likes to know about these
things because that means they owe back taxes and penalties.**

I don't think the above statement is true.  Non-profit corporations are a
name for a type of corporation, not a statement.  Tax-exempt status is
granted by the IRS to certain organizations that meet the requirements for
charitable organizations.  (See publication 557 from the IRS.)  Because the
tax-exempt status is difficult to receive, many non-profits set up a
separate corporation for that purpose.  In many circles, it usually is for
educational purposes--even scholarships to universities.

Susan

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