What does it take to be exempt under section 501(c)(3)?
Charities must meet two basic tests to be exempt under section 501(c)(3)—they must be created and operated for a purpose that Congress recognized as charitable and their activities must benefit others. To keep their federal tax exemption, charities must not confer improper benefits on anyone, they must refrain from campaigning for or against political candidates, and lobbying for or against the enactment of legislation may not be a substantial part of what they do.
Related Questions
- My organization does not have federal exemption (or is exempt under a different Internal Revenue Code section). How do I obtain tax-exempt status for California?
- How can I be sure my organization is classified as tax exempt under section 501(c)(3)?
- Are mining and mineral extraction wastes exempt under Section 304?
