Charities are the most common type of nonprofit organization. Charities refer to organizations that operate for:
- Religion
- Education
- Science
- Literature
- Public safety testing
- Amateur sports
- Preventing cruelty to children or animals
Other common nonprofits:
- Public charities
- Foundations
- Social advocacy groups
- Trade organizations
Nonprofits:
- Are referred to as non-stock corporations or 501(c)(3) organizations
- Must pay employment taxes for staff
- Enjoy federal tax benefits on income
- Do not distribute profits to shareholders or owners
- Do not issue stock
Within 501(c)(3) organizations, there are:
- Private foundations
- 509(a)(1)
- Religious
- Scientific
- Literary
- Over 1 million charities in the U.S.
- 75% of nonprofits are public charities, foundations, advocacy groups or trade organizations
- These contribute 75% of the $3.67 trillion in revenue and expenses reported for the whole sector
- Federal credit unions are 501(c)1 organizations
- 501(c)1 organizations are not required to apply for tax-exempt status or file annual tax returns