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A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of 501(c) nonprofit organizations in the US.
Mar 9, 2024 · Article Sources. A 501 (c) (3) organization is a tax-exempt nonprofit organization subject to many IRS rules. Learn the requirements, costs, and pros and cons of setting up a 501 (c)...
- Julia Kagan
- 1 min
In the United States, both nonprofits are tax-exempt. There are various types of nonprofit exemptions, such as 501(c)(3) organizations that are a religious, charitable, or educational-based organization that does not influence state and federal legislation, and 501(c)(7) organizations that are for pleasure, recreation, or another nonprofit purpose.
Section 501 (c) (3) creates a federal income tax exemption for organizational activities that are “charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, [or] preventing cruelty to children or animals.”
Jan 29, 2024 · Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
Sep 19, 2022 · A 501(c)(3) organization is a nonprofit that enjoys special, tax-exempt status. These organizations are obligated to serve the public good. Nonprofits can receive grants from the government and from private foundations due to their tax-exempt status, and they receive several discounts as well, from postage to advertising rates.
