What is a 501 ( c ) (3) Organization ?
(source - www.irs.gov)
To be tax-exempt under section 501(c)(3) of the Internal Revenue
Code, an organization must be organized and operated exclusively for
exempt purposes set forth in section 501(c)(3), and none of its earnings
may inure (meaning - to become of advantige) to any private
shareholder or individual.
In addition, it may not be an action organization, i.e., it may not attempt to
influence legislation as a substantial part of its activities and it may not
participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3), other than testing for
public safety organizations, are eligible to receive tax-deductible
contributions in accordance with Code section 170.
The organization must not be organized or operated for the benefit of
private interests, and no part of a section 501(c)(3) organization's net
earnings may inure to the benefit of any private shareholder or
individual.
