Classifying your organization:

Section 501(c)
Most tax-exempt nonprofit organizations are listed beneath Internal Income Code Section 501(c). This code consists of an substantial list of distinctive sorts of organizations that the IRS deems worthy of tax-exempt status depending on their mission statements Frequently, unless your organization qualifies as a 501(c) organization, it is not eligible for tax-exempt status as a nonprofit.
 

The following is usually a list of your most popular sorts of organizations that qualify as Section 501(c) organizations: 

 501(c)(3) - Public benefit organizations: These organizations include things like religious, educational, charitable, scientific, literary, public safety, and amateur sporting organizations and organizations for the prevention of cruelty to young children and animals.

 501(c)(4) - Mutual benefit organizations: These organizations include things like civic leagues, welfare organizations, and employee associations. These organizations possess a mission to benefit their members or some other group that they represent or are formed to serve.

 501(c)(5) - Labor, agricultural, and horticultural organizations: This distinct section of your Internal Income Code reflects a policy of supporting these groups considering the fact that the Terrific Depression.

 501(c)(6) - Business leagues, chambers of commerce, and real estate boards (such as condominium associations): These organizations have a quasi-commercial objective, but Congress decided that their objective is not definitely producing revenue for the clubs, and so they are not taxed. (The objective of those clubs is definitely producing revenue for their members.)

 501(c)(7) - Social and recreational clubs: Congress at some point decided that entertaining should really not be taxed.

 501(c)(8) - Fraternal beneficiary societies and associations: This category contains groups like the Shriners of North America.

 501(c)(9) - Voluntary employees’ beneficiary associations: This group contains organizations which include your wellness insurance coverage group or people today in distinct professions who join together for the objective of getting group positive aspects for their members.

 501(c)(12) - Benevolent life insurance associations, mutual ditch or irrigation providers, and mutual or cooperative telephone providers: These organizations engage in some kind of activity that is mutually valuable, but not in and of itself engaged in producing a profit.

 501(c)(13) - Cemetery companies: Here’s one particular section of your law that enables you to prevent taxes, but not death.

 501(c)(14) - State chartered credit unions and mutual reserve funds: These are organizations that deliver banking and also other services to their members devoid of themselves earning a profit.

 501(c)(15) - Mutual insurance companies or associations: This can be a further kind of a cooperative organization exceptional for the insurance coverage sector.

 501(c)(20) - Group legal service plans: Here’s the category that the lawyers managed to sneak into.

 501(c)(26) - State-sponsored organizations delivering wellness coverage for high-risk individuals: Lots of states have particular applications to cover men and women with wellness insurance coverage that otherwise could possibly not be capable of get insurance coverage for the reason that of their wellness status. It tends to make sense that these applications, considering the fact that they do not turn a profit, are tax exempt. (The Wisconsin High Threat Wellness Insurance coverage System is an example of one particular such state
sponsored service.)