Kinds of Non-Profit Organizations :: Internal Revenue Services

Many people know about 501(c)(3) nonprofit organizations, but separate types of nonprofits are not as commonly known. The IRS established several sections of the intragroup taxation Code that nonprofit organizations can train down the stairs. An organization desiring to entertain for nonprofit status, moldiness(prenominal)iness chip in under the section that fits its purpose. Understanding the types of nonprofits forthcoming and the qualifications for each helps you choose the correct section to apply under.According the IRS, volt basic classifications of nonprofit organizations exist under atom 501(c)(3)of the Internal Revenue Code. Classifications include charitable, religious, educational, scientific and literary. A nonprofit organization may take root under one or more classifications. For example, a Christian benignity providing food to homeless citizens could fall under charitable and religious classifications. Nonprofits must apply for federal tax-exemption as a 501(c)(3) by completing body 1023. 501(c)(3)nonprofits can offer tax-exempt donations to individual contributors.Nonprofit organizations organize to assist social and community welfare can apply for federal tax-exemption under Section 501(c)(4) of the Internal Revenue Code. To qualify, organizations must provide a public assistance to the general public. Organizations catering to a private group of people do not congruous eligibility requirements. An example of a 501(c)(4) is an organization that provides social resources to retirees. Charitable, educational and recreational organizations that do not qualify for 501(c)(3) status can apply under this section. Unlike 501(c)(3) nonprofits, 501(c)(4) organizations can participate in lobbying activities. Organizations whose primary bank line with the public reflects that of a for-profit corporation cannot qualify as a 501(c)(4). Nonprofits must apply for this status by completing Form 1024.Social clubs formed for nonprofit exempt p urposes can apply for federal tax-exemption under Section 501(c)(7) of the Internal Revenue Code. Form 1024 is used to apply for a 501(c)(7). To qualify under this section, nonprofits cannot discriminate against citizens based on race, color or religion. However, religious 501(c)(7) organizations can limit its membership to those belonging to a particular religion. 501(c)(7) nonprofits must receive support from memberships fees and dues. Example of nonprofits with this status include college fraternities and sororities, country clubs and homeowners associations that meet for the purpose of preserving its recreation areas and facilities.