Section 501(c)(3) Basics Section 1

Section 1 (Total Run Time: 9 min. 22 sec.)

• “Nonprofit”
• State law concept
• “Tax-Exempt”
• Federal and state tax law concept
• IRC § 501(a) – provides the exemption
• §501(c) – about 28 categories of eligible entities
• Most fit w/in 2 categories
• Public-Serving
• Mutual-Benefit (member-serving orgs)
• §501(c)(3)
• Generally include public-serving organizations and houses of worship
• Special benefits of §501(c)(3) status

Presented by Will Foster