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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