IRS 501(c)(3)

IRS 501(c)(3) refers to a designation for nonprofit organizations that are exempt from federal income tax because they operate for charitable, religious, educational, scientific, or similar purposes. To qualify, these organizations must serve the public good and cannot benefit private interests. Contributions made to 501(c)(3) organizations are often tax-deductible for donors. This designation also involves specific rules about governance and reporting to ensure the organization remains focused on its charitable mission. Overall, it enables nonprofits to operate with certain financial advantages while working to serve the community.