What Is a 501(c)(3) Number?

501(c)(3) organizations are charitable organizations.

In the United States, organizations that fall under the 501(c)(3) section of the Internal Revenue Code are tax-exempt organizations that are known as charitable organizations. The IRS has many standards for these organizations.

Tax Exempt

Charitable organizations that fall under the 501(c)(3) section of the Internal Revenue Code of the IRS are allowed to accept tax-deductible donations. Further, their revenues are tax exempt.

Nonpolitical

501(c)(3) organizations are not allowed by law to be involved in campaigns for or against anyone running for office. Further, while they are able to lobby for their cause, they are limited in that no "substantial" portion of their activities be for lobbying.

Nonprofit

Charitable organizations are not allowed to be operated or structured such that any private interests (shareholders or other individuals) benefit financially from the organization.

Charitable Defined

Charitable organizations receive their tax exemption because of their implicit benefits to the general public. Religious, scientific and educational agencies are just a few of the types of organizations that can apply for tax exempt status.

Financial Tests and Audits

501(c)(3) organizations are subject to rigorous record-keeping standards to prove that they are using their funds for strictly the purposes for which they received tax exemption in the first place.

References

• IRS: Exemption Requirements - Section 501(c)(3) Organizations

Resources

• Foundation Group: Start a Non-Profit