A subsection of the Internal Revenue Code governing the status of non-profit organizations devoted exclusively to religious, charitable, scientific, educational, and other, similar purposes. 501(c)3 organizations are exempt from federal taxation and, in most cases, contributions and donations made to them are also tax exempt. Nearly all major charities in the United States are 501(c)3 organizations; many philanthropic foundations do not provide grants to organizations not registered under 501(c)3. They are not allowed to lobby for political candidates.
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501(c)(3)A charitable organization, named after Internal Revenue Code, Section 501(c)(3), which gives such organizations tax-exempt status.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.