501(c)

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State nonprofit regulation information Nonprofit regulation in the states Nonprofit organization IRS code, section 501

Section 501(c) of the U.S. tax code is titled "List of exempt organizations" and lists 29 types of organizations which fit into this category. Note: The words "association," "order," "league," and other related words are included in the umbrella term "organization" for the purposes of this article.

501(c)(1)

Organizations created by Congress as an instrument of the United States that are exempt from federal income taxes fall under section 501(c)(1).

501(c)(2)

See also: 501(c)(2)

501(c)(2) organizations exist for the sole purpose of holding title to property, as opposed to being an operating organization and turning over income thus collected to an organization which itself is exempt under section 501(a).

501(c)(3)

See also: 501(c)(3)

Section 501(c)(3) is for corporations, community chests, funds, or foundations, which exist to pursue the following purposes:

• Religious
• Charitable
• Scientific
• Testing for public safety
• Literary/educational
• Fostering national or international amateur sports competition, if none of the funds are used for sports equipment or athletic facilities. (The limitation on sports equipment was thought necessary to prevent private gyms and athletic clubs from gaining exemption under 501(c)(3). However, since it also potentially affected athletic organizations such as Olympic training, Congress added Section 501(j) to provide exemption for amateur athletic organizations if their primary purpose was to develop amateur athletes for national or international sports competition. Under 501(j), amateur athletic organizations could be tax exempt even if they provided equipment or facilities.)
• The prevention of cruelty to children or animals.

These organizations may have no involvement in political campaigns.

501(c)(4)

See also: 501(c)(4)

Subsection 501(c)(4) covers civic organizations or local employee associations operated solely for the promotion of social welfare. The membership of these is limited to either members of a specific municipality or members of a specific profession. The net earnings must be devoted exclusively to charitable, educational, or recreational purposes; private individuals must not benefit from these.

501(c)(5)

Organizations under this subsection include labor, agricultural, or horticultural organizations. A prominent example of these organizations is the SEIU.

501(c)(6)

501(c)(6) organizations are organizations which are not organized for profit and which do not profit an individual or private shareholder. These include:

• Business leagues
• Chambers of commerce
• Real-estate boards
• Boards of trade
• Professional football leagues.

501(c)(7)

See also: 501(c)(7)

This subsection is for organizations which are organized for pleasure, recreation, and other nonprofitable purposes.

501(c)(8)

See also: 501(c)(8)

Subsection 501(c)(8) is for fraternal beneficiary societies, orders, or associations operating under the lodge system.

501(c)(9)

See also: 501(c)(9)

Section 501(c)(9) is composed of voluntary employees' beneficiary associations.

501(c)(10)

See also: 501(c)(10)

This subsection is for domestic fraternal societies operating within the lodge system.

501(c)(11)

See also: 501(c)(11)

Local teachers' retirement fund associations are listed under this subsection.

501(c)(12)

See also: 501(c)(12)

Section 501(c)(12) includes the following when 85% or more of an organization's income consists of amounts collected from members:

• Local benevolent life insurance associations
• Mutual ditch or irrigation companies
• Mutual or cooperative telephone companies.

Some of these entities have several conditions to meet, which are covered under 501(c)(12)(B),(C), and (H); definitions are covered under 501(c)(12)(D),(E),(F), and (G); and rules and conditions are discussed under section 501(c)(12)(H).

501(c)(13)

See also: 501(c)(13)

This section lists nonprofit cemetery companies.

501(c)(14)

See also: 501(c)(14)

Organizations under this subsection include credit unions without capital stock organized and operated for mutual purposes.

501(c)(15)

See also: 501(c)(15)

This subsection is for insurance companies other than life if certain conditions are met. For example, the gross receipts for the taxable year do not exceed $600,000, or in the case of a mutual insurance company, if the gross receipts for the taxable year do not exceed $150,000.

501(c)(16)

See also: 501(c)(16)

This section includes cooperative organizations for the financing of crop operations.

501(c)(17)

See also: 501(c)(17)

Organizations under this section are supplemental unemployment benefit trusts for dispensing unemployment compensation.

501(c)(18)

See also: 501(c)(18)

Employee-funded pension trust organizations, which meet certain conditions and were created before June 25, 1959, are covered under this section.

501(c)(19)

This section includes organizations comprised of past or present members of the Armed Forces of the United States as well as their spouses, descendants, and ancestors.

501(c)(20)

This section included specific requirements for group legal services plans. It was eliminated on June 30, 1992.

501(c)(21)

This section lists rules regarding Black Lung benefit trusts.

501(c)(22)

This section concerns the Withdrawal Liability Payment Fund, a trust created or organized in the United States and established in writing by the plan sponsors of multiemployer plans.

501(c)(23)

This section includes veterans organizations (created before 1880) for present or past members of the Armed Forces with a principal purpose of providing benefits to veterans or their dependents.

501(c)(24)

The text of 501(c)(24) stated: "A trust described in section 4049 of the Employee Retirement Income Security Act of 1974 (as in effect on the date of the enactment of the Single-Employer Pension Plan Amendments Act of 1986)." As of October 14, 2025, 501(c)(24) was not listed in the Internal Revenue Services' "Organization Reference Chart."

501(c)(25)

This section is "Title Holding Corporations or Trusts with Multiple Parents." The subparagraphs of this subsection outline which specific corporations fall within this category as well as specific rules the corporations must abide by for tax-exempt status.

501(c)(26)

State-sponsored organizations providing health coverage for high-risk individuals are outlined under this section.

501(c)(27)

This section covers state-sponsored workers' compensation reinsurance organizations.

501(c)(28)

The National Railroad Retirement Investment Trust, established under section 15(j) of the Railroad Retirement Act of 1974, is discussed in this section.

501(c)(29)

This section exempts qualified nonprofit health insurance issuers "that have received a loan or grant under the Centers for Medicare and Medicaid Services (CMS) CO-OP program for periods that they meet both the requirements of section 1322 of the Affordable Care Act and of any loan agreement with CMS." It was created by section 1322(h)(1) of the Affordable Care Act.

See also

• IRS code, section 501

External links

• Cornell Law School - Exemption from tax on corporations, certain trusts, etc.
• Internal Revenue Service - Requirements for exemption
• Internal Revenue Service - Exempt purposes - Internal Revenue Code Section 501(c)(3)