1. Private Organization Law and Definition
2. The Difference Between Public & Private NonProfit Organizations
3. Public Charities
4. Private Foundations

Working for a private organization is different than working for the public sector. If you are contemplating which type of job you would like, be certain of the type of organization it is and recognize the benefits and drawbacks of both so that you can make an informed decision.

Private Organization Law and Definition

A private organization is any partnership, corporation, person, or agency that is not operated by a profit or a public body. It includes all businesses that are for-profit that are not government owned or operated.

A private organization can be a non-federal body that is self-sustaining and established on federal property by people that are not acting in a federal government capacity.

A company or corporation that is run by the government are run in the public sector. Charities and other forms of nonprofits are working within the voluntary sector. For instance, a private organization can function on an Army installation as long as it has written permission of the installation commander. POs are not considered a federal entity and are not to be used in that way.

The Difference Between Public & Private NonProfit Organizations

Private sectors will employ workers via different business owners, non-government agencies, and corporations. The jobs can include any in a financial service, aviation, newspaper, law, and other types of non-government jobs. The workers will be paid via profits made by the company.

Those working in the private sector have more opportunity for increases in pay, better choices in career, increased opportunity for a promotion, not as much job security, and benefits that are not as comprehensive.

This results in working in a marketplace that is more competitive, often requiring long hours, and working in a more demanding environment than you would in a government job.

A public sector will hire employees through the government; either federal, state, or local. The typical civil service career can include:

·      Teaching

·      Healthcare

·      Emergency services

·      City council

·      Armed forces

The employees in the public sector are paid with a part of tax dollars via the government. These jobs have better and more comprehensive benefit plans along with better job security. After a probationary period, a government job can generally become permanent.

It is typically easy to move to another public sector position while you keep the same benefits, holiday hours, and sick pay. However, getting increases in pay and promotions can be harder.

Working in the public sector offers a work environment that is more stable and that does not have the same market pressures as those in the private sector.

A nonprofit organization will have a major impact on the well-being of a country, both economic and social. It can have great benefits to society in ways in which cannot be met by the private sector. This is why they are tax-exempt via Section 501(c)(3) of the Internal Revenue Code.

The IRS will distinguish a nonprofit organization by how much the public is involved in its operation. This results in nonprofits moving into two different categories: a public charity and a private foundation.

Public Charities

A public charity is a public nonprofit that is very common and is the first thing most think of when hearing that an organization is nonprofit. While they include churches, shelters, or medical facilities, they can also include universities or medical research organizations because they are considered statutory public charities.

Charities can also be supportive to other charities in providing support to them and their programs.

Before, a nonprofit organization had to endure a waiting period until the IRS deemed them to be a public charity. Today, they are immediately classified due to a change in the IRS code.

Private Foundations

An organization is considered a private foundation under tax law section 501(c)(3). Unlike a public nonprofit, a private foundation can be managed by small groups of people or a family.

They get the bulk of their money from a pool of donors or from investments. They are more restricted than public nonprofits. Not abiding by regulation can mean major financial and legal penalties for a private foundation.

If you need help with understanding what a private organization is, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law, and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.