501(c)(3) (IRS Tax-Exempt Status)

A 501(c)(3) is a designation from the IRS that identifies an organization as a nonprofit dedicated to charitable, religious, educational, or scientific purposes. This status allows the organization to be tax-exempt, meaning it doesn't pay federal income tax on its income, and donors can often deduct contributions on their tax returns. To qualify, the organization must operate primarily for its exempt purpose and not benefit private interests. This status helps nonprofits focus resources on their missions while providing tax incentives to supporters.