What is a 501(c)(3)? Nonprofit types explained

"Nonprofit" is a broad legal family. The IRS recognizes more than two dozen exemption types under section 501(c) of the tax code, and they differ in the one way donors care about most: whether your gift is tax-deductible.

The types you'll actually meet

• 501(c)(3) — charities, churches, schools, foundations. The only large category where donations are generally tax-deductible. Organizations must serve a charitable, religious, educational or scientific purpose, and are banned from political campaigning.
• 501(c)(4) — social welfare organizations. Civic leagues and advocacy groups. They may lobby extensively, but donations are not deductible.
• 501(c)(6) — business leagues. Chambers of commerce and trade associations. Not deductible as charity.
• 501(c)(7) — social clubs. Country clubs, fraternities. Member funded; not deductible.

Public charity vs. private foundation

Within 501(c)(3) there are two flavors. Public charities raise money from many donors and run programs. Private foundations are usually funded by one family or company and mainly make grants to other charities; they file a different return (Form 990-PF) and follow stricter payout rules.

How to check before you give

Every profile on this site shows the organization's exemption type and a "Donations tax-deductible" badge sourced from the IRS Business Master File. If the badge is missing, your gift may still be worthwhile — it just isn't deductible, and you should know that before tax season.