Nonprofits: Get to Know the Different Types
In the United States, there are over 1.6 million nonprofit organizations, each serving the public interest and categorized as tax-exempt by the IRS. While many are familiar with traditional 501(c)(3) organizations, there are nearly 30 different types of nonprofits, each with its own rules and designations.
Types of Nonprofit Organizations:
1. 501(c)(1): Organizations established by Congress, such as federal credit unions.
2. 501(c)(2): Holding companies for exempt organizations.
3. 501(c)(3): Charitable organizations, including religious, educational, and scientific groups.
4. 501(c)(4): Social welfare organizations and civic leagues.
5. 501(c)(5): Labor, agricultural, and horticultural organizations.
6. 501(c)(6): Trade and professional associations.
7. 501(c)(7): Social and recreational clubs.
8. 501(c)(8): Fraternal societies.
9. 501(c)(9): Employee beneficiary associations.
10. 501(c)(10): Domestic fraternal societies and associations.
11. 501(c)(11): Teacher's retirement fund associations.
12. 501(c)(13): Cemetery companies.
13. 501(c)(14): State-chartered credit unions and mutual reserve funds.
14. 501(c)(15): Mutual insurance companies.
15. 501(c)(16): Cooperative organizations to finance crop operations.
16. 501(c)(17): Supplemental unemployment benefits trusts.
17. 501(c)(18): Employee-funded pension trusts.
18. 501(c)(19): Veterans organizations.
19. 501(c)(20): Qualified legal service plans (eliminated as of 1992).
20. 501(c)(21): Black lung benefits trusts.
21. 501(c)(22): Withdrawal liability payment funds.
22. 501(c)(23): Veterans organizations established before 1880.
23. 501(c)(26): State-sponsored organizations providing health coverage for high-risk individuals.
24. 501(c)(27): State-sponsored workers' compensation reinsurance organizations.
25. 501(d): Religious and apostolic associations.
26. 501(e): Cooperative hospital service organizations.
Each designation has its own set of rules regarding eligibility, lobbying, electioneering, and tax-deductible contributions. Understanding these differences is crucial for nonprofits to operate effectively and maintain their tax-exempt status.
If you need assistance with filing for nonprofit status or navigating the complexities of nonprofit designations, simply contact me. I am here to help.