[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.