Interactive Guide to 501(c)(3) Tax Exemption

Interactive Guide to 501(c)(3) Status

This tool simplifies the key concepts from the IRS Form 1023 instructions, helping you understand the benefits and requirements of becoming a tax-exempt organization.

Why Become a 501(c)(3)? The Core Benefits

Tax Exemption

Your organization is exempt from federal income tax, allowing more resources to go directly toward your mission.

Deductible Donations

Donors can deduct contributions they make to your organization on their personal tax returns, encouraging support.

Grant Eligibility

Many foundations and government agencies exclusively award grants to organizations with 501(c)(3) status.

Quick Eligibility Check

Answer these two questions to see if your organization meets the basic requirements.

Is your organization structured as a Corporation, an Unincorporated Association, or a Trust?

Is your purpose exclusively charitable, religious, educational, scientific, literary, testing for public safety, or preventing cruelty to children or animals?

Public Charity vs. Private Foundation

This is a key distinction based on your sources of funding. Select one to see the typical funding model.