26 U.S. Code Section 501(c)

26 U.S. Code Section 501(c) outlines different types of nonprofit organizations that can qualify for tax-exempt status in the United States. This means they do not pay federal income tax on certain types of income. These organizations typically operate for charitable, religious, educational, scientific, or similar purposes. The most common type, 501(c)(3), includes charities and churches, allowing donors to deduct their contributions from their taxable income. By providing these benefits, the law encourages support for organizations that serve the public good without the pressure of taxation on their operations.