501(c)
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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 |
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Investopedia explains '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 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 |
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