501(c)(3) nonprofit

A 501(c)(3) nonprofit is a type of organization recognized by the IRS as serving a charitable, religious, educational, scientific, or similar purpose. It operates exclusively for the public good, and its income must be used to support its mission rather than distribute profits to owners or shareholders. Donations made to a 501(c)(3) are often tax-deductible for the giver. These organizations are required to file annual reports and adhere to specific regulations to maintain their tax-exempt status. Essentially, they work to benefit the community or the public interest while enjoying certain legal and financial privileges.