![handle is hein.crs/crsaipe0001 and id is 1 raw text is: Order Code RS21892
Updated December 12, 2007
Application Process for Seeking Section 501 (c)(3)
Tax-Exempt Status
Erika Lunder
Legislative Attorney
American Law Division
Summary
Charities and other entities seeking tax-exempt status as § 501(c)(3) organizations
generally must apply to the Internal Revenue Service. This report provides an overview
of the application process.1
Organizations Eligible for § 501(c)(3) Status
Nonprofit organizations that meet the criteria in Internal Revenue Code § 501(c)(3)
qualify to be exempt from the federal income tax. The organization may be formed as a
corporation, trust, or unincorporated association. Organizations are formed under state
law, and the specific requirements vary by state. In general, a state's secretary of state
will be able to provide information on how to form an organization.
In order to be eligible for tax-exempt status, the organization must meet the
requirements in IRC § 501(c)(3). Section 501(c)(3) reads:
Corporations, and any community chest, fund, or foundation, organized and operated
exclusively for religious, charitable, scientific, testing for public safety, literary, or
educational purposes, or to foster national or international amateur sports competition
(but only if no part of its activities involve the provision of athletic facilities or
equipment), or for the prevention of cruelty to children or animals, no part of the net
earnings of which inures to the benefit of any private shareholder or individual, no
substantial part of the activities of which is carrying on propaganda, or otherwise
1 Further information and the forms referenced in this report are available on the IRS website at
[http://www.irs.gov/charities/charitable/index.html]. IRS Publication 557, Tax-Exempt Status
for Your Organization, may be particularly useful. For general information on tax-exempt
organizations, see CRS Report 96-264, Frequently Asked Questions About Tax-Exempt
Organizations, by Erika Lunder.](ViewImageLocal?handle=hein.crs/crsaipe0001&div=1&collection=&method=preview&ext=.png&size=3)
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