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What is a 501(c)(3)?

PostedDecember 23, 2022
UpdatedDecember 23, 2022
By8qwmy

A 501(c)(3) organization is a nonprofit organization that qualifies for tax exempt status under the internal revenue code section 501 subsection (c)(3).

Charitable organizations that have registered as a nonprofit corporation at the state level can apply to the Internal Revenue Service (IRS) for federal tax exempt status under internal revenue code (IRC) section 501. The IRC, enforced by the IRS, specifies tax exemption rules for different types of nonprofit. Only certain purposes and entities qualify for 501(c)(3) status, and regulations must be followed to maintain 501(c)(3) status. Read on to learn exactly what a 501(c)(3) nonprofit is and what an organization needs to do to qualify for 501(c)(3) status.

Purposes that Qualify for 501(c)(3) Status

To obtain 501(c)(3) status, a nonprofit organization must exist for one or more of the following charitable purposes:

  • Religious
  • Charitable
  • Scientific
  • Testing for public safety
  • Literary
  • Educational
  • Fostering of national or international amateur sports
  • Prevention of cruelty to animals and children

If your nonprofit’s purpose is not one of the above, then you will not qualify for 501(3)(c) status.

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