501(c)(3) organization

A 501(c)(3) organization is a United States corporation, <a href="/facts/Trust_(business)/RcTxcTat">trust</a>, <a href="/facts/Unincorporated_association/8XM4FuND">unincorporated association</a> or other type of organization exempt from federal income tax under section 501(c)(3) of <a href="/facts/Title_26/AKPavAh6">Title 26</a> of the <a href="/facts/United_States_Code/2AjxEDPq">United States Code</a>. It is one of the 29 types of <a href="/facts/501(c)_organization/Qx1XrC9t">501(c)</a> nonprofit organizations in the US.
501(c)(3) tax-exemptions apply to entities that are organized and operated exclusively for <a href="/facts/Religion/cxntrD0R">religious</a>, <a href="/facts/Charitable_organization/x8frlCm4">charitable</a>, <a href="/facts/Science/IJoaD7rs">scientific</a>, <a href="/facts/Literature/CmUDxokU">literary</a> or <a href="/facts/Education/WIwsQKF9">educational</a> purposes, for <a href="/facts/Public_security/qrjPmFHH">testing for public safety</a>, to foster national or international <a href="/facts/Amateur_sports/dwlWo6b4">amateur sports</a> competition, or for the prevention of <a href="/facts/Child_abuse/Ed2v0ujQ">cruelty to children</a> or <a href="/facts/Cruelty_to_animals/alRzUnxd">animals</a>. 501(c)(3) exemption applies also for any non-incorporated <a href="/facts/Community_Chest_(organization)/zo1YW4wn">community chest</a>, fund, <a href="/facts/Cooperating_Associations/Xcplq3XH">cooperating association</a> or foundation organized and operated exclusively for those purposes. There are also supporting organizations—often referred to in shorthand form as "Friends of" organizations.
<a href="/facts/Internal_Revenue_Code/AKPavAh6">26 U.S.C.</a> <a href="https://www.law.cornell.edu/uscode/text/26/170">§ 170</a> provides a deduction for federal income tax purposes, for some donors who make <a href="/facts/Charitable_contribution_deductions_in_the_United_States/vhMw65HG">charitable contributions</a> to most types of 501(c)(3) organizations, among others. Regulations specify which such deductions must be verifiable to be allowed (e.g., receipts for donations of $250 or more).
Due to the tax deductions associated with donations, loss of 501(c)(3) status can be highly challenging if not fatal to a charity's continued operation, as many foundations and corporate <a href="/facts/Matching_funds/Q21nzy6y">matching funds</a> do not grant funds to a charity without such status, and individual donors often do not donate to such a charity due to the unavailability of tax deduction for contributions.

501(c)(3) organization open-in-new

501(c)(3) organization