Mission and Purpose
The purpose of an organization establishes why it was formed and/or its mission. A nonprofit health corporation commits to uphold a charitable, educational, benevolent, or social welfare purpose and its activities must advance that public purpose. A for-profit focuses on the financial bottom line and works to maximize stockholder or private investor profits.
Where to Find Evidence of a Nonprofit Corporation’s Charitable Purpose
- Articles of incorporation, by-laws, enabling statutes, or other incorporating documents.
- Advertising, marketing materials, annual reports, fundraising materials, and statements to regulators.
- Magazine and newspaper articles about the nonprofit.
- History of the nonprofit corporation, including involvement in health promotion, health coverage of otherwise uninsurable populations, special discounts or rate reimbursements, and other community efforts.
- Filings made with regulatory agencies responsible for oversight of nonprofit corporations, including I.R.S. Form 990 (a form containing financial data which nonprofits with annual revenues greater than $25,000 are required to file annually with the I.R.S.) and reports that insurance companies must file annually with state regulators. Click here for more about I.R.S Form 990.
- Donations, grants, gifts and other contributions.
- Applications for tax-exemptions.
Questions to Ask When Evaluating Whether Your Nonprofit Health Entity is Living up to its Mission (PDF)