DEFINITION of '501(c)'

A subsection under the United States Internal Revenue Code. The subsection relates to non-profit organizations and tax law and identifies which nonprofit organizations are exempt from paying federal income tax


Under subsection 501(c) there are 12 other sections that separate the different organizations according to operations. The most common include:

c(1) - Any corporation that is organized under an act of Congress that is exempt from federal
income tax
c(2) - Corporations that hold title of property for exempt organizations
c(3) - Corporations, funds or foundations that operate for religious, charitable, scientific,
literary or educational purposes
c(4) - Nonprofit organizations that promote social welfare
c(5) - Labor, agricultural or horticultural associations
c(6) - Business leagues, chambers of commerce, etc. that are not organized for profit
c(7) - Recreational organizations

  1. Accountants for the Public Interest ...

    An organization whose volunteer accountants provide free services ...
  2. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  3. Income Tax

    A tax that governments impose on financial income generated by ...
  4. Private Foundation

    A charitable organization that, while serving a good cause, does ...
  5. Charitable Remainder Trust

    A tax-exempt irrevocable trust designed to reduce the taxable ...
  6. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
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