Non-profit (501C3) organisation

A 501(c)(3) organization is a corporation, trust, unincorporated association, or other type of organization that is exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is the most common type of the 29 types of 501(c) nonprofit organizations in the United States. Many charitable non-profits in the United States that Americans commonly know of, and often make donations to, are 501(c)(3) organizations, ranging from charitable foundations to universities and churches. These organizations must be approved by the Internal Revenue Service to be tax-exempt under the terms of section 501(c)(3) of the Internal Revenue Code.

501(c)(3) tax-exemptions apply to entities that are organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for testing for public safety, or to foster national or international amateur sports competition, or for the prevention of cruelty to children, women, or animals. 501(c)(3) exemption applies also for any non-incorporated community chest, fund, cooperating association or foundation that is organized and operated exclusively for those purposes. There are also supporting organizations—often referred to in shorthand form as "Friends of" organizations.

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