Not for Profit Organization

The IRS grants 501(c)(3) status to nonprofit corporations that meet certain requirements.  This status exempts the organization from Federal income tax and Federal unemployment tax (FUTA). There are eight types of tax-exempt 501(c)3 organizations:  charitable; religious; educational; scientific; literary organizations; those that test for public safety; support national and international sports competitions; and those that work to prevent cruelty to children or animals.