501(c)(3)
501(c)(3) definition - finance
The section in the Internal
Revenue Service tax code that describes the criteria an organization has to meet
in order to receive tax-exempt status; such an organization is a 501(c)(3)
organization. The organization may be charitable or religious, or it may be set
up to promote common interests, such as the environment or running. One
advantage of being classified as a 501(c)(3) is that donors can deduct their
contributions from their income taxes.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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