Refers to an organization that has applied for and obtained tax-exempt status from the IRS under Section 501(c)(3) of the Internal Revenue Code
. To qualify for Section 501(c)(3) status, the organization must be formed for charitable, religious, educational, scientific, or literary purposes; for testing related to public safety; to foster national or international amateur sports competition; or for the prevention of cruelty to children or animals. An organization with 501(c)3 status does not pay income taxes related to its nonprofit
purposes, can receive tax-deductible contributions from donors, and is eligible for private foundation grants.