501(c)(3)n.
Reviewed by Owen Hathaway, AttorneyUpdated June 4, 2026The federal tax status for charitable nonprofits. These entities are exempt from income tax, and sometimes certain state-level taxes, and are able to receive tax-deductible donations, in exchange for strict limits on their activities.
A 501(c)(3) is an organization recognized by the IRS as tax-exempt under that section of the Internal Revenue Code because it is organized and operated for charitable, religious, educational, scientific, or similar purposes. Contributions to most 501(c)(3)s are tax-deductible to donors.
In exchange, these organizations face strict limits: no private inurement, only limited lobbying, and a ban on political campaign activity. Exempt status is a federal tax classification, separate from forming the nonprofit entity under state law.
Forming a Colorado or Wyoming nonprofit corporation is a state step (filing articles of incorporation); obtaining 501(c)(3) status is a separate federal step, generally via IRS Form 1023 or 1023-EZ submitted through Pay.gov. State formation does not by itself confer tax exemption.
Related terms
- articles of incorporationThe document filed with the state that legally creates a corporation or nonprofit corporation. (LLCs file articles of organization instead.)
- Form 990The annual information return most tax-exempt organizations file with the IRS. It's public, so it doubles as a transparency and accountability document.
- group exemptionAn IRS arrangement letting a central organization extend its tax-exempt status to subordinate chapters under one umbrella, instead of each applying separately.