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
BREAKING DOWN '501(c)'
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
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