What types of organizations will qualify for 501(c)(3) tax exemption?

What types of organizations will qualify for 501(c)(3) tax exemption?

To qualify for 501(c)(3) tax exemption you must be organized and operated exclusively for one or more of the following purposes:

  • Charitable
  • Religious
  • Educational
  • Scientific
  • Literary
  • Testing for public safety
  • To foster national or international amateur sports competition
  • Prevention of cruelty to children or animals


In addition to your purpose, to qualify for 501(c)(3) tax exemption, you must also:
  • Refrain from supporting or opposing candidates in political campaigns in any way
  • Ensure that your net profits do not disproportionately benefit any private shareholders or individuals (board members, officers, key management employees, or insiders)
  • May not substantially benefit any personal-interest or non-exempt purposes
  • May not be organized or operated to conduct a trade or business not related to your exempt purposes
  • May not devote substantial attention to attempting to influence legislation (lobbying).
  • May not provide commercial insurance as a substantial part of your activities.

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