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Charitable Organization
Practical Law Glossary Item 5-612-4105 (Approx. 3 pages)
Glossary
Charitable Organization
A type of non-profit corporation organized under Section 501(c)(3) of the Internal Revenue Code (IRC). A charitable organization is organized and operated exclusively for one or more of the following reasons:
- For religious, charitable, scientific, testing for public safety, literary, or educational purposes.
- To foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment).
- For the prevention of cruelty to children or animals.
In addition, a charitable organization may not:
- Allow any of its earnings to inure to the benefit of any private shareholder or individual.
- Attempt to influence legislation as a substantial part of its activities.
- Participate in any campaign activity for or against political candidates.
Charitable organizations may file for tax-exempt status with the IRS and are classified as either private foundations or public charities.