What purposes are valid for a nonprofit?
To qualify for federal tax-exempt status, the nonprofit corporation must be organized and operate for some religious, charitable, educational, literary or scientific purpose permitted under 501(c)(3) of the tax code. The religious category refers to general types of religious organizations and more formal institutionalized churches. Charitable purpose is defined in section 501(c)(3) as providing services beneficial to the public interest. Scientific research that is carried on in the public interest qualifies for tax-exempt status; however, research incidental to commercial or industrial operations does not qualify. The literary purpose includes writing, publishing and distribution of books which are directed toward promoting the public interest rather than engaging in commercial book writing and selling. The educational purpose is a broad purpose that allows instruction for both self-development and the benefit of the community. The purpose must be listed in the articles of incorporat
