What Is 501(C)(3) Status?

Organizations which help children may be 501(c)(3) eligible.

Certain charitable organizations can apply for tax-exempt status under the Internal Revenue Service. Generally they must be non-profit organizations which qualify for exemptions under section 501(c)(3) of the IRS code.

Definition of Charitable

The IRS defines "Charitable Organization" as one which includes work for relief of the poor or distressed; advancement of religion, science or education; maintaining public buildings; advancing human rights and lessening burdens on government.

Exemptions

Organizations can gain tax-exempt status if they are charitable, religious, literary, involve amateur sports competitions or prevent cruelty to animals or children.

Prohibitions

A 501(c)(3) organization may not benefit private interests and is limited by the amount of government lobbying it can do under IRS rules.

Eligibility

The IRS offers an online question-and-answer process which an organization can use to determine if it qualifies under section 501(c)(3).

FAQs

The IRS website offers a frequently-asked-questions section, which includes links to annual reporting requirements, the application process and public disclosure.

References

• IRS definition of charitable organization
• IRS limits on charitable organizations
• IRS questionnaire

Resources

• IRS FAQs on 501(c)(3) organizations