The Internal Revenue Service (IRS) in the United States recognizes several types of nonprofit organizations under Section 501(c) of the Internal Revenue Code. Each type of nonprofit has its own statutory definition and eligibility criteria. Here are some of the most common types of nonprofit organizations under Section 501(c) along with their statutory definitions:
1. 501(c)(3) Organizations:
- Statutory Definition: Organizations organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or to prevent cruelty to children or animals. They may include charitable foundations, educational institutions, religious organizations, and more.
2. 501(c)(4) Organizations:
- Statutory Definition: Social welfare organizations that primarily engage in promoting the common good and general welfare of a community. They may engage in lobbying and some political activities but must not primarily engage in partisan political activities.
3. 501(c)(6) Organizations:
- Statutory Definition: Business leagues, chambers of commerce, real estate boards, and professional associations that are not organized for profit and whose primary purpose is to promote the common business interests of their members.
4. 501(c)(7) Organizations:
- Statutory Definition: Social and recreational clubs organized for pleasure, recreation, and other nonprofitable purposes, primarily for the benefit of their members. Examples include country clubs and hobby clubs.
5. 501(c)(8) Organizations:
- Statutory Definition: Fraternal beneficiary societies and associations that provide for the payment of life, sick, accident or other benefits to their members or their dependents.
6. 501(c)(10) Organizations:
- Statutory Definition: Domestic fraternal lodges and societies that operate under the lodge system and provide for the payment of life, sick, accident, or other benefits to their members.
7. 501(c)(19) Organizations:
- Statutory Definition: Veterans' organizations, including posts or organizations of past or present members of the U.S. Armed Forces, organized for patriotic, charitable, educational, and other specified purposes.
It's important to note that these are just a few of the most common 501(c) designations, and there are other subsections under Section 501(c) that cover various types of nonprofit organizations. The specific eligibility criteria and regulations for each type of nonprofit can be complex, and organizations seeking tax-exempt status should consult the IRS and possibly legal counsel to ensure they meet the requirements for their desired designation. Additionally, tax laws and regulations may change over time, so it's essential to consult the most up-to-date IRS guidance when considering nonprofit status.
Certainly! Here are some additional subsections under Section 501(c) of the Internal Revenue Code that cover various types of nonprofit organizations:
8. 501(c)(5) Organizations:
- Statutory Definition: Agricultural and horticultural organizations, such as farmers' cooperatives or associations, which are operated for the betterment of farmers and agricultural interests.
9. 501(c)(11) Organizations:
- Statutory Definition: Teachers' retirement fund associations that provide retirement benefits to teachers and certain employees of educational institutions.
10. 501(c)(12) Organizations:
- Statutory Definition: Benevolent life insurance associations, mutual ditch or irrigation companies, and mutual or cooperative telephone companies, primarily operated to provide insurance or essential services to their members.
11. 501(c)(13) Organizations:
- Statutory Definition: Cemetery companies that are owned and operated exclusively for the benefit of their members or lot owners.
12. 501(c)(15) Organizations:
- Statutory Definition: Mutual insurance companies or associations providing insurance, with the purpose of providing insurance coverage to members in a cooperative manner.
13. 501(c)(17) Organizations:
- Statutory Definition: Supplemental unemployment benefits trusts established by employers to provide benefits to employees during periods of unemployment.
14. 501(c)(18) Organizations:
- Statutory Definition: Employee-funded pension trusts that are maintained by certain labor unions.
15. 501(c)(21) Organizations:
- Statutory Definition: Black lung benefit trusts that provide benefits to coal miners affected by pneumoconiosis (black lung disease).
16. 501(c)(22) Organizations:
- Statutory Definition: Withdrawal liability payment funds established by employers to meet their obligations under the Employee Retirement Income Security Act (ERISA).
17. 501(c)(23) Organizations:
- Statutory Definition: Veterans' organizations that are chartered by Congress and meet specific requirements.
18. 501(c)(25) Organizations:
- Statutory Definition: Title-holding corporations or trusts for tax-exempt organizations, which hold title to property for the benefit of one or more tax-exempt organizations.
These are some of the less commonly known subsections under Section 501(c), each tailored to specific types of nonprofit organizations. Each subsection has its own eligibility criteria, rules, and regulations, which may vary widely depending on the type of organization. As with any tax-exempt status, it's essential for organizations to carefully review the IRS guidelines and seek professional advice when applying for or maintaining tax-exempt status. Additionally, tax laws and regulations may change over time, so it's crucial to consult the most current IRS guidance.