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Difference between revisions of "501(c)(3)"

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'''501(c)(3)''' refers to a section of the U.S. federal income tax code.  Organizations that have been granted 501(c)(3) status by the Internal Revenue Service may only conduct non-partisan activities.  501(c)(3) groups are sometimes referred to as "non-profits."  This can be a source of confusion, since all U.S. states allow certain corporations to register as "not-for-profit" corporations.  A corporation may be a not-for-profit corporation under the laws of the state in which it is incorporated, but not have federal 501(c)(3) status.
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{{Template:Nonprofit small}}
  
Donations to 501(c)(3) groups are tax deductible for the individual who makes the donation.
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'''501(c)(3)''' refers to a section of the U.S. federal income tax code concerning charitable, religious, and educational organizations.<ref>[http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Exempt-Purposes-Internal-Revenue-Code-Section-501(c)(3) ''Internal Revenue Service'', "Exempt Purposes - Internal Revenue Code Section 501(c)(3)," accessed January 13, 2014]</ref> Organizations that have been granted 501(c)(3) status by the [[Internal Revenue Service]] may only conduct nonpartisan activities.<ref>[http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Exemption-Requirements-Section-501(c)(3)-Organizations ''Internal Revenue Service'', "Exemption Requirements - 501(c)(3) Organizations," accessed January 13, 2014]</ref>
  
501(c)(3) organizations are not required to publicly disclose their donors. They may choose to do so, or the donor may choose to disclose that he or she provided a grant to a 501(c)(3) organization.
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501(c)(3) groups are sometimes referred to as "nonprofits." This can be a source of confusion, since all U.S. states allow certain corporations to register as "not-for-profit" corporations. A corporation may be a not-for-profit corporation under the laws of the state in which it is incorporated, but not have federal 501(c)(3) status.
  
Some non-profit groups have two related corporations -- a 501(c)(3) and a [[501(c)(4)]]. Under IRS tax code, it is legal to transfer funds from a 501(c)(3) to a 501(c)(4), but the restrictions on how the money is spend carry over on any such transferred funds.
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Donations to 501(c)(3) groups are tax deductible for the individual who makes the donation. 501(c)(3) organizations are not required to disclose their donors publicly. They may choose to do so, or the donor may choose to disclose that he or she provided a grant to a 501(c)(3) organization.
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Some nonprofit groups have two related corporations--a 501(c)(3) and a [[501(c)(4)]]. Under IRS tax code, it is legal to transfer funds from a 501(c)(3) to a 501(c)(4), but the restrictions on how the money is spent carry over on any such transferred funds.<ref>[http://www.gpo.gov/fdsys/granule/USCODE-2011-title26/USCODE-2011-title26-subtitleA-chap1-subchapF-partI-sec501/content-detail.html ''U.S. Government Publishing Office,"Section 501 of the IRS Code," accessed March 18, 2015]</ref>
  
 
==See also==
 
==See also==
 
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{{td}}
*[[501(c)(4)]]
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* [[IRS code, section 501]]
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* [[501(c)]]
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* [[501(c)(4)]]
  
 
==External links==
 
==External links==
 
 
* [http://www.fourmilab.ch/ustax/www/t26-A-1-F-I-501.html Section 501 of the IRS code]
 
* [http://www.fourmilab.ch/ustax/www/t26-A-1-F-I-501.html Section 501 of the IRS code]
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==References==
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{{reflist}}
  
 
[[Category:Terms and definitions]]
 
[[Category:Terms and definitions]]
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[[Category:Nonprofit organizations]]
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[[Category:CLP terms]]

Latest revision as of 10:56, 26 March 2015

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501(c)(3) refers to a section of the U.S. federal income tax code concerning charitable, religious, and educational organizations.[1] Organizations that have been granted 501(c)(3) status by the Internal Revenue Service may only conduct nonpartisan activities.[2]

501(c)(3) groups are sometimes referred to as "nonprofits." This can be a source of confusion, since all U.S. states allow certain corporations to register as "not-for-profit" corporations. A corporation may be a not-for-profit corporation under the laws of the state in which it is incorporated, but not have federal 501(c)(3) status.

Donations to 501(c)(3) groups are tax deductible for the individual who makes the donation. 501(c)(3) organizations are not required to disclose their donors publicly. They may choose to do so, or the donor may choose to disclose that he or she provided a grant to a 501(c)(3) organization.

Some nonprofit groups have two related corporations--a 501(c)(3) and a 501(c)(4). Under IRS tax code, it is legal to transfer funds from a 501(c)(3) to a 501(c)(4), but the restrictions on how the money is spent carry over on any such transferred funds.[3]

See also

Ballotpedia:Index of Terms

External links

References