Do You Qualify to be a Tax Exempt 501c3 Nonprofit?

Let’s talk about how to know you qualify to be a tax exempt 501c3 nonprofit. Section 501c3 of the Internal Revenue Code lays out the criteria for nonprofits to be considered tax-exempt. 

In this section of the I.R.S. code, a 501c3 nonprofit is “organized and operated exclusively for exempt purposes.”  This means that the only purpose of your organization should be a religious, educational, charitable, scientific, or literary purpose.

There are other types of organizations that are tax-exempt, but many of them fall under other sections of the code. For example, there is a different section for civic leagues or real estate title companies. Fraternal societies, as well as insurance associations, also have their own sections of the code. The first thing you want to do is make sure that you fall under Section 501c3 instead of one of the other sections. Diving into all of the different types of nonprofits that qualify for 501c3 stats is a bit beyond the scope of this blog post, but you can visit the I.R.S. website for a complete listing of 501c3 criteria and qualifying organizations. My law firm includes this evaluation free of charge for our clients to let them know up front if their proposed nonprofit organization will qualify for this status. 

Starting your nonprofit as soon as possible is very important. At Chisholm Law Firm, we have a 100% success rate for our clients. You can rest assured that your nonprofit is in the best hands. We’ll get everything done right the first time. Call us today to schedule your free consultation.

And remember – it shouldn’t be this hard to be a superhero.



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