what is 501 c 
501 c is a subsection of the united states internal revenue code irc that confers tax exempt status on nonprofit organizations specifically it identifies which nonprofit organizations are exempt from paying federal income tax the government offers this tax break to promote the presence of organizations that exist purely for the public good and help them stay afloat common tax exempt organizations include charities government entities advocacy groups educational and artistic groups and religious entities types of 501 c organizationsunder subsection 501 c there are multiple sections that delineate the different types of tax exempt organizations according to their purpose and operations the most common include groups that might fit the designated categories must still apply for classification as 501 c organizations and meet all of the stipulations required by the irs tax exemption is not automatic regardless of the nature of the organization 2501 c 3 organizationsthe 501 c 3 organization is probably the most familiar tax category outlined in section 501 c 3 of the irc it covers the sort of nonprofits that people commonly come into contact with and donate money to see special considerations below in general there are three types of entities that are eligible for 501 c 3 status charitable organizations churches religious entities and private foundations other types of 501 c organizationsthe 501 c designation has expanded over time to encompass more types of organizations 3other organizations that qualify for listing under this designation can potentially include tax exempt organizations must file certain documents to maintain their status as explained in irs publication 557 4tax deductible donations to 501 c organizationsin addition to being tax exempt themselves 501 c organizations offer a tax advantage to others a portion of donations they receive may be deductible from a taxpayer s adjusted gross income agi organizations falling under section 501 c 3 which are primarily charities and educational or social welfare orientated nonprofits are often qualified to offer this benefit to donors 5in general an individual who itemizes deductions on their tax return may deduct contributions to most charitable organizations up to 50 60 for cash contributions of their agi computed without regard to net operating loss carrybacks individuals generally may deduct charitable contributions to other organizations up to 30 of their agi 6the irs offers an exempt organization database that allows you to check an organization s status 7a charity or nonprofit must have 501 c 3 status if you plan to deduct your donation to it on your federal tax return the organization itself can often tell you which sorts of donations are deductible and to what extent for example if you buy a one year museum membership for 100 50 might be deductible 