IRS 501(c)(3) status

IRS 501(c)(3) status is a designation given to organizations that operate for charitable, religious, educational, scientific, or literary purposes. This status allows such organizations to be exempt from federal income taxes and enables donors to deduct their contributions on tax returns. To qualify, organizations must serve the public good, avoid political campaigning, and adhere to specific rules and reporting requirements. Essentially, 501(c)(3) status recognizes a nonprofit’s commitment to serving the community while offering tax benefits to both the organization and its supporters.