501(c)(3) Educational Group Requirements
The Internal Revenue Service (IRS) outlines requirements for 501(c)(3) nonprofit organizations. A subset of 501(c)(3) organizations includes educational groups. These groups enjoy tax-exempt status at both the federal and state level as well as an improved ability to solicit donations. Examples of organizations that qualify include schools with a regularly scheduled curriculum, regular faculty and regularly enrolled student body; museums, zoos and planetariums; nonprofit children’s daycare centers; credit counseling organizations; and alumni associations and athletic organizations.
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Structure
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The Internal Revenue Service dictates that educational groups must organize as corporations, community chests, funds, foundations or trusts to qualify for 501(c)(3) status. Partnerships and individuals do not qualify as educational groups.
Activities
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All educational groups must perform educational activities, the IRS states. To obtain and maintain educational group 501(c)(3) status, educational groups must outline how they carry out these activities, which might be through schools, lectures, panels, radio, television and cultural media (such as museums, orchestras or art exhibits).
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Racial Nondiscrimination
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Private schools organized as educational groups under 501(c)(3) must contain a statement in their charter, bylaws or resolution of their governing body regarding their racial nondiscrimination policy. The school must maintain records indicating the racial makeup of the student body as well as information showing financial aid is awarded on a nondiscriminatory basis.
Application
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All educational groups must apply for 501(c)(3) tax-exempt status by filling out IRS Form 1023. (See Resources.)
Examples
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References
Resources
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