The 501(c)(3)

Let’s take a closer look at 501(c)(3)s. 

501(c)(3)s are organized and operated for one or more of eight exempt purposes described in Code section 501(c)(3). Here is a description of the three most common types of 501(c)(3)s:

Entities organized for a charitable purpose include those that promote:

• Relief of the poor, the distressed, or the underprivileged;
• Lessening of neighborhood tensions; and
• Defense of human and civil rights secured by law.

Entities organized for a religious purpose include:

• Churches,
• Synagogues,
• Mosques, and
• Other religious organizations.

Entities organized for an educational purpose include:

• Schools,
• Museums,
• Symphony orchestras,
• Day care centers, and
• Youth sports organizations.

For more information on exempt purposes, see IRS Publication 557, Tax-Exempt Status for Your Organization.