How Does the IRS Interpret Section 501(c)(3)?
In order to understand how the IRS determines eligibility for tax exemptions under Section 501(c)(3), it is necessary to understand where the standards that the IRS applies come from.
Section 501(c)(3) itself is part of a federal statute, Section 501 of Title 26 of the United States Code, and states that the following organizations are exempt from income taxation:
Corporations ... organized and operated exclusively for
religious,
charitable,
scientific,
testing for public safety,
literary, or
educational purposes, or to
foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or
for the prevention of cruelty to children or animals,
no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or
otherwise attempting, to influence legislation ..., and
which does not participate in, or
intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
Last updated on March 17th, 2014
Originally Posted by Chex
How Does the IRS Interpret Section 501(c)(3)?
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