Difference Between 501c and 501c3
Both types of organization are exempt from federal income tax, however a 501(c)3 may allow its donors to write off donations whereas a 501(c) does not.
Overview of Tax Exemption
A nonprofit organization with a tax-exempt status is not required to pay corporate tax on income that comes from activities that are sufficiently related to its purposes.
What is a 503c?
A 501(c)(3) non-profit organization, commonly referred to as a 503(c) non-profit, is a type of tax-exempt organization recognized by the Internal Revenue Service (IRS) in the United States.
501(c)(3) Corporation
A 501(c)(3) corporation is a nonprofit organization that does not have to pay federal income taxes.
How to Check Your 501(c)(3) Status
Check the IRS website for processing updates. Follow up to ensure the IRS received your application.
What’s the Difference Between a Nonprofit and a 501(c)3?
Nonprofits face limits on their activities. Donations to 501(c)(3) organizations are generally tax deductible.
Discerning Differences Between 501(c) and 501(c)(3)
501(c) organizations are generally free to engage in any lawful activity, while 501(c)(3) organizations are subject to more restrictions on their activities.
Activities and Restrictions
501(c) organizations are generally free to engage in any lawful activity, while 501(c)(3) organizations are subject to more restrictions on their activities.
How to Form a Nonprofit 501(c)(3) Corporation
Choose a name, file articles of incorporation, apply for your IRS tax exemption, apply for a state tax exemption, draft bylaws, appoint directors, hold a meeting of the board, obtain licenses and permits.
What’s the Difference between 501(c) and 501(c)(3)?
Both types of organization are exempt from federal income tax, however a 501(c)(3) may allow its donors to write off donations whereas a 501(c) does not.