501(c)(3) nonprofit organization

A 501(c)(3) nonprofit organization is a type of entity recognized by the IRS as being formed legally for charitable, religious, educational, scientific, or literary purposes. These organizations do not operate to make a profit for owners or shareholders. Instead, they use their funds to support their mission and can receive tax-deductible donations from the public, which encourages giving. Additionally, 501(c)(3)s are generally exempt from federal income taxes, allowing more resources to go directly toward their programs and services.