What Is 501 C3 Non-Profit Status?

Internal Revenue Service (IRS) section code 501(c)(3) provides for organizations to be qualified as exempt from taxes on any financial contributions. A 501(c)(3) organization is typically a charity or exempt organization as defined in the IRS codes.

Exempt Organizations

A variety of types of organizations qualify to be tax exempt as a 501(c)(3). Examples include charitable organizations, educational programs, public safety organizations and cruelty prevention programs for children and animals. IRS Publication 557 discusses exempt organizations.

Charitable Organizations

A charitable organization as described in the IRS code is one that exists to provide relief for the poor, advancement of religion, creation of public monuments and buildings, defense of human rights and other types of services specified by the IRS.

Political Activities

A 501(c)(3) organization may not exist for political lobbying or to endorse a specific candidate for elected office. It must also not participate in any activities against a political candidate.

Private Benefits

A 501(c)(3) may not benefit any of the creators, contributors or others who have personal connections to the organizers.

Legal Formation

To qualify as a 501(c)(3), an organization must exist as a trust, a corporation or an association.

References

• Internal Revenue Service