Section 501(c)(3)

Section 501(c)(3) of the Internal Revenue Code defines a category of nonprofit organizations that are tax-exempt because they operate for charitable, educational, religious, or scientific purposes. Donations made to these organizations are generally tax-deductible for the donor. To qualify, the organization must not benefit private interests and must serve the public good. This status helps nonprofits raise funds more easily and ensures that they can use most of their resources for their mission rather than paying taxes. However, they also have to adhere to specific regulations and reporting requirements.