Financial

501(c)3 Bond

501(c)3 Bond

A tax-exempt municipal bond used by a local government entity to raise money for a 501(c)3 organization. That is, a 501(c)3 bond represents a sort of public-private partnership in which a municipality provides financing for a charity, educational foundation, or other organization organized under subsection 501(c)3 of the Internal Revenue Code. A 501(c)3 bond is not subject to the federal alternative minimum tax. It is a type of private activity bond.
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