what is a 501 c 3 organization 
section 501 c 3 is a portion of the u s internal revenue code irc and a specific tax category for nonprofit organizations organizations that meet section 501 c 3 requirements are exempt from federal income tax the internal revenue service irs recognizes more than 30 types of nonprofit organizations but only those that qualify for 501 c 3 status can say that donations made to them are tax deductible 1most of the organizations that may be eligible for 501 c 3 designation fall into one of three categories charitable organizations churches and religious organizations and private foundations 2 the rules outlined in section 501 c 3 are regulated by the u s treasury through the irs 