501(c)(3) Organization

501(c)(3) Organization

A 501(c)(3) Organization is a tax-exempt nonprofit organization in the United States recognized under Section 501(c)(3) of the Internal Revenue Code. These organizations operate for religious, charitable, scientific, literary, or educational purposes.

To qualify for 501(c)(3) status, organizations must meet specific requirements, including not being organized for profit, ensuring that no part of the net earnings benefits private individuals, and refraining from substantial lobbying activities or political campaigning.

Examples of 501(c)(3) Organizations include charities, educational institutions, and religious groups. Contributions made to these organizations are generally tax-deductible for the donor, which can incentivize charitable giving.