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What Can You Do With a 501(c)(3)? Understanding IRS Charitable Purposes

When you hear the term nonprofit, the first thing that typically comes to mind is a charity, or 501(c)(3) organization. That’s for good reason, since roughly 78% of all tax-exempt organizations are exempt under IRC Section 501(c)(3). The remaining 22% consists mostly of social welfare nonprofits, business leagues, and social/recreation clubs, plus about 24 less-voluminous possibilities. But what does it mean to be a 501(c)(3) nonprofit? What sets a 501(c)(3) apart from the other categories of nonprofits out there? In a phrase: charitable purpose. 📚 ADDITIONAL RESOURCES •eBook: Successfully Starting a Nonprofit https://bit.ly/3M0Nj41 •VIDEO: How to Start a 501(c)(3) Nonprofit?    • How Do You Start a 501(c)(3) Nonprofit?   •BLOG ARTICLE: How the IRS Defines Charitable Purpose https://bit.ly/3ypY4J8 🏆 YOUR NEXT STEP: •Fill out this form for a FREE consultation on how to start a nonprofit: https://bit.ly/3Tu9nYE •Register for Fundraising TV: https://www.501c3.org/fundraising-tv/ •Download the FREE eBook “10 Things You Need to Know Before Starting a Nonprofit” https://bit.ly/3XhFag0 0:00 Introduction 0:40 IRS Restricts Purposes 1:16 Religious 2:50 Scientific 3:58 Testing for Public Safety 4:44 Literary 5:07 Educational 6:32 Fostering National and International Amateur Sports 7:51 Prevention of Cruelty to Animals and Children 8:26 Charitable 9:08 Conclusion