[Code of Federal Regulations] [Title 2, Volume 1] [Revised as of January 1, 2008] From the U.S. Government Printing Office via GPO Access [CITE: 2CFR230.25] [Page 147] TITLE 2--GRANTS AND AGREEMENTS CHAPTER II--OFFICE OF MANAGEMENT AND BUDGET CIRCULARS AND GUIDANCE PART 230_COST PRINCIPLES FOR NON-PROFIT ORGANIZATIONS (OMB CIRCULAR A 122)-- Sec. 230.25 Definitions. (a) Non-profit organization means any corporation, trust, association, cooperative, or other organization which: (1) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; (2) Is not organized primarily for profit; and (3) Uses its net proceeds to maintain, improve, and/or expand its operations. For this purpose, the term ``non-profit organization'' excludes colleges and universities; hospitals; State, local, and federally-recognized Indian tribal governments; and those non-profit organizations which are excluded from coverage of this part in accordance with Sec. 230.20(c). (b) Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the part and its Appendices. Generally this permission will be in writing. Where an item of cost requiring prior approval is specified in the budget of an award, approval of the budget constitutes approval of that cost.