The IRS has numerous considerations and criteria that 501(c)(3) organizations must adhere to, but they have a few basic requirements:IRS 501(c)(3) Requirements
IRS 501(c)(3) Requirements FAQs
A 501(c)(3) organization is a non-profit organization with tax exempt status that is dedicated to the general well-being of society.
To maintain 501(c)(3) status, the IRS requires at least one third of the income come from public donations, regualr payment of dues, and an avoidance of political activity.
A 501(c)(3) organization is tax exempt so long as it remains true to its stated mission and remains compliant with the IRS.
501(c)(3) is the internal revenue code (IRC) section for organizations with tax exempt status. 501(c)(3) falls under internal revenue code 501(c).
Organizations with IRS 501(c)(3) status can receive several benefits such as tax-deductible donations, exemption from federal income tax, and eligibility for grants and other forms of funding. Additionally, organizations with this designation may qualify for reduced postal rates and certain state tax exemptions.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
