Types of Tax-Exempt Organizations: 501(c)(3), (4), (6) and More
Section 501(c) of the Internal Revenue Code lists many kinds of exempt organizations. The category decides what the organization may do, whether donations are deductible, and which forms it files. These are the ones we see most often.
| Section | Typical organizations | Donations deductible by the donor? |
|---|---|---|
| 501(c)(3) | Charitable, religious, educational, scientific and literary organizations; groups that test for public safety, foster amateur sports, or prevent cruelty to children or animals | Generally yes, within the donor’s limits. Private foundations and public charities have different rules. |
| 501(c)(4) | Social welfare organizations, civic leagues, many neighborhood and advocacy groups | Generally not as charitable contributions |
| 501(c)(5) | Labor, agricultural and horticultural organizations | Generally not as charitable contributions |
| 501(c)(6) | Business leagues, trade associations, chambers of commerce | Generally not as charitable contributions (dues may be a business expense) |
| 501(c)(7) | Social and recreation clubs | No |
| 501(c)(8) and (10) | Fraternal beneficiary societies and domestic fraternal societies | Depends on the use of the gift |
| 501(c)(19) | Veterans organizations | Depends on the organization |
Public charity or private foundation?
A 501(c)(3) is a private foundation unless it qualifies as a public charity, usually because it gets broad public support or operates in support of other public charities (Schedule A of the Form 990 reports public charity status and public support). Private foundations file Form 990-PF every year, whatever their size, and follow additional rules on self-dealing, minimum distributions and excise tax. Public charity status can also change as the funding mix changes, so it should be checked every year.
Why the category matters
- Donor deductions: only some categories receive deductible gifts. Misdescribing a 501(c)(4) or (c)(6) as “tax-deductible” is a common mistake.
- Lobbying and political activity: limits differ by category.
- Forms: the application form depends on the category (see tax-exempt status), and the annual return depends on size (see which Form 990).
- Unrelated business income rules apply to most categories (see unrelated business income).
The right category for a new organization depends on its purposes and activities. We can review your plan before you apply, so you do not file the wrong form.
General educational information. Filing rules, thresholds, penalties and state requirements depend on individual facts and change over time. Confirm them on irs.gov and with your state regulators, and consult a qualified professional before filing a return or an application. This site is an independent guide and is not affiliated with the IRS.