Both federal and state law define non-profit entities, typically with reference to the federal income tax code’s definition of non profit entities. The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.
Either an LLC or a corporation (depending upon how they are registered with the federal governement) can elect non-profit status. But, there are challenges associated with winning approval from the federal government as well as in maintaining your tax exempt status.
As a result, those leading non-profit entities require additional definition and attention when creating their business structures in insure that their non-profit benefits are not abandoned.