Overview of 501(c)(3) Organizations
A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code.
Characteristics of 501(c)(3) Organizations
Examples of 501(c)(3) organizations include nonprofit hospitals, youth groups, educational institutions, and local food pantries like Cedars-Sinai Medical Center, Salvation Army, Girl Scouts of the USA, and Harvard University.
Requirements for 501(c)(3) Status
To get the 501(c)(3) status, a corporation must file for a Recognition of Exemption. The status exempts the organization from paying federal taxes on revenues and income generated, but the organization is still required to file tax returns.
Churches and 501(c)(3) Status
Most churches in America have organized as “501c3 tax-exempt religious organizations.” This trend started in 1954 when churches were added to section 501c3 of the tax code. A 501(c)(3) organization cannot be involved in a political campaign and maintain its status.