Determine the Organization Type

A proposed organization may want to be aware of the various categories of nonprofits recognized by the Internal Revenue Service. Each category has different tax benefits yet is required to comply with different restrictions. While the majority of nonprofits are classified under 501(c)(3) of the IRS Code as charitable organizations, a proposed organization should review the types below to determine the right choice for its particular group.

501(c)(3)                Charitable or Religious Organizations
501(c)(4)                Social Welfare Organizations
501(c)(5)                Labor and Agricultural Organizations
501(c)(6)                Business Leagues
501(c)(7)                Social Clubs
501(c)(8) or (10)    Fraternal Societies
501(c)(19) or (23)  Veterans Organizations
501(c)(4) or (9)      Employee Associations