private nonprofit organization

(3) (A) The Secretary may not deny an application from an entity that seeks a grant under this section to carry out a project described in subsection (b)(1)(A) solely on the basis that the entity proposes to use funding from other private or public sources, if the entity demonstrates that a private nonprofit organization will provide oversight and site control for the project. (B) In this paragraph, the term “private nonprofit organization” means the following: (i) An incorporated private institution, organization, or foundation— (I) that has received, or has temporary clearance to receive, tax-exempt status under paragraph (2), (3), or (19) of section 501(c) of the Internal Revenue Code of 1986; (II) for which no part of the net earnings of the institution, organization, or foundation inures to the benefit of any member, founder, or contributor of the institution, organization, or foundation; and (III) that the Secretary determines is financially responsible. (ii) A for-profit limited partnership or limited liability company, the sole general partner or manager of which is an organization that is described by subclauses (I) through (III) of clause (i). (iii) A corporation wholly owned and controlled by an organization that is described by subclauses (I) through (III) of clause (i).

Source

38 USC § 2011(c)(3)


Scoping language

In this paragraph
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