What Is A 501(c)(3) Nonprofit Organization?

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Foundation Group

Foundation Group

Күн бұрын

There are a number of terms that people often use interchangeably: nonprofit, charity, tax-exempt organization, and 501(c)(3). In reality, an organization could be one of those, all of those, or somewhere in between. The terms do not necessarily mean the same thing. So... what is a 501(c)(3) nonprofit?
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📱 Check out our video series on the “other” nonprofits:
•What is a 501(c)(4) Nonprofit Organization?
• What Is A 501(c)(4) No...
•What is a 501(c)(6) Nonprofit Organization?
• What Is A 501(c)(6) No...
•What is a 501(c)(7) Nonprofit Organization?
• What Is A 501(c)(7) No...
❓ What is the difference between a Public Charity, a Private Foundation, and a Private Operating Foundation?
• • Public Charity vs. Pri...
0:00 Introduction
0:50 The Basics of a 501(c)(3) Nonprofit Organization
1:30 Benefits of 501(c)(3) Status
2:20 Purpose Limitations of a 501(c)(3)
2:41 Religious
2:55 Scientific Research
3:15 Testing for Public Safety
3:48 Literary
4:04 Educational
4:24 Fostering National and International Amateur Sports
5:02 Prevention of Cruelty to Animals and Children
5:28 Charitable
5:56 Qualifying Entities
6:25 Types of 501(c)(3) Organizations
7:18 Restrictions of Activities
8:08 Conclusion

Пікірлер: 24
@FoundationGroup
@FoundationGroup 2 жыл бұрын
If you need help filing for IRS 501(c)(3) status, we’d love to help! You can fill out our contact form at bit.ly/3i6rFxz or give us a call at 888-361-9445.
@TexasTone
@TexasTone Ай бұрын
Thank you for the concise & professional info.
@FoundationGroup
@FoundationGroup Ай бұрын
Thanks for watching!
@jondennis2644
@jondennis2644 Жыл бұрын
Best video I have seen on the introductory areas of 501(c)(3)'s. Superbly done video: Content is authoritative and well researched, speaking techniques, hand gestures and communication are exemplary, video editing is engaging, somewhat humorous, and professional. As well done as this is , just a very minor point, but to kick the presentation up a notch, but still keep it relaxed, ditch the T-shirt, get a classier shirt; it shouldn't be a white shirt and tie, but it should match the professional level of the speaker.
@GotbStudios
@GotbStudios Жыл бұрын
Thank you for the information
@lk01242
@lk01242 2 жыл бұрын
Thank you. Super helpful
@carmenalejandramolinarange8647
@carmenalejandramolinarange8647 Жыл бұрын
Such a great help to get to know how the non-profits work in the US.
@richardk4218
@richardk4218 Жыл бұрын
Your web site and your KZfaq channel have proven to be an excellent resource. I'm wondering why you don't stand out in the Google search feature for non-profit startup consulting. Thanks for being so generous with your expertise. I will be going with Foundation Group!
@gregmcray
@gregmcray Жыл бұрын
Thanks, Richard! We look forward to hearing from you. We'll have to work on the SEO for that key-phrase, sounds like :) .
@waynecmontgomery
@waynecmontgomery 2 жыл бұрын
Again great video!!! Always super educational, and a great quick refresher of law school 101 and the first year of law practice. However, I am disappointed that you didn't name Underwriters Laboratories as your example when you spoke about public testing. All of us over age 50 remember what the UL seal meant. You never bought a product if it didn't have the UL seal. I can hear my mother now 😜 🤣. That was before China and Japan became some of our largest trading partners.
@FoundationGroup
@FoundationGroup 2 жыл бұрын
Ah, funny you mention that! We considered it, but thought too many under-50s might know Consumer's Union/Reports a little better. For what it's worth, UL is still hard at work doing what they do!
@SanDiegoFarmGal
@SanDiegoFarmGal 11 ай бұрын
Hi, I'm wondering if you can please advise which is better to help founders retain their status, a sole membership or as a Designated Director.? Thanks!
@gregmcray
@gregmcray 11 ай бұрын
Both structures work well. The Designated Director role allows a founder to maintain control over who serves on the board, without some of the attendant complications that comes with creating a membership structure. The DD does not have to same overall authority that a sole member does, but it is certainly a viable alternative and be all you need. Keep in mind there are a variety of ways to set up a DD structure, so do some research before jumping in all the way.
@timsmith4001
@timsmith4001 Жыл бұрын
trying to figure out which 501 our group would apply for we are a sheriffs dept. volunteer k-9 search & rescue team any help would be appreciated
@FoundationGroup
@FoundationGroup Жыл бұрын
Most public safety groups that are not a unit of government qualify as tax-exempt under Section 501(c)(4). We have worked with dozens of VFDs over the years as c4s. Reach out if you need help getting it all set up. See the link in the video description.
@boxedinfo
@boxedinfo 7 ай бұрын
Can I run different programs under 1 501 c
@FoundationGroup
@FoundationGroup 7 ай бұрын
Absolutely, so long as all programs satisfy an acceptable purpose that aligns with your 501(c) status. For example, if you are a 501(c)(3), then all your programs must satisfy a charitable purpose. If you are a 501(c)(7), then all distinct programs must be recreational or social in nature. Hope that helps.
@jak71113
@jak71113 2 жыл бұрын
Maybe I missed it in the video, but how does someone make a “profit” while running a non-profit. Also, you mention “no part of the activities or net earnings should unfairly benefit any officer, director, or private individual.” (At the 7:34 mark.) I point this part out, because a non-profit hospital I worked for in my old state did a merger with another system and the two CEOs of their respective systems walked away with a decent profit in the low millions. Meanwhile, us employees were being given raises that didn’t break .75 cents. ACORN is another nonprofit that comes to mind that’s had some legal issues. Smaller nonprofits back in my old state have been known to have “profits” stolen by individuals. Curious if you have a video that dives into why an individual would want to run a nonprofit, and how they make a living doing so. Or if you have a video discussing nonprofits in the past that became carried away in illegal activities.
@FoundationGroup
@FoundationGroup 2 жыл бұрын
First, let me say I understand how working at a nonprofit hospital can make it tough to see how these issues play out. Those types of organizations are often hard to distinguish from for-profit hospitals, and in fact, are the subject of a lot of increasing government scrutiny. That said, EVERY nonprofit needs to make a profit. By that, I mean that every company, whether commercial or charitable, must bring in more money than it spends or it will go out of business. Simple business principle. Being a nonprofit isn't about that, as much as it is the purpose of the organization. Plus, if there is a profit, it isn't supposed to go into the pockets of insiders like it would with a regular company. Insiders can get paid for services rendered, but in the form of salary and benefits, not company profits. One reason for that is that nonprofits aren't owned by anyone, but rather governed by a board. You bring up ACORN...they lost their tax-exemption years ago due to illegal activity.
@jak71113
@jak71113 2 жыл бұрын
@@FoundationGroup Sad part is, these health systems are only getting larger. I worked for Aurora (Wisconsin), who merged with Advocate (Illinois), and now they are planning to merge with Atrium health out of North Carolina. The larger they get, the less of a local connection and employee connection. I understand that hospitals are businesses at the end of the day (surgeries making the bulk of profits) but it’s beginning to be more about making profits and an out-of-touch board being happy, than providing proper/adequate patient care and employee morale. Before becoming a cardiac sonographer, I was an ICU tech. We’d have patients on the unit who were waiting for a room on the floor to open up (so these were non-icu patients in a “holding pattern” for a standard room.) While in the ICU, receiving standard care, they would be charged ICU rates (higher insurance cost). This was done all the time. Or an overdose patient that came in with multiple issues, including organ failure, who weighed 155 upon arrival and 84lbs two months later when he passed. I watched him be reduced to nothing, as meds were being dumped into him. All for the sake of increasing his bill (he was terminal and no amount of meds would help.) We’d also hear how other systems around the country operated in a similar fashion (profit over care,) via travel nurses who worked with us. We’ve been working the job of two people before Covid even started, and it’s just sad to see the board and CEOs get the benefit of our work, which is why I question these non-profits.
@waynecmontgomery
@waynecmontgomery 2 жыл бұрын
I have a bit of a brain teaser to follow up on in excess of my comment below. My question could Lockheed Martin be considered a nonprofit? It is a defense or national security company that performs a public service and purpose, it gets 90% of its revenue from the federal government, and it has offices in all 50 states that provide job prospects for women and others who are considered disadvantaged, they also spend 70% of their capital doing scientific research that benefits the US Military. My former law partners would argue for hours about this. Indeed there are some for-profit companies that could be considered nonprofits
@FoundationGroup
@FoundationGroup 2 жыл бұрын
Under certain circumstances, it is conceivable. There is a sub-sub-category of 501(c)(3) purpose that I didn't mention that is called "lessening of government burden". That's a situation where a 501(c)(3) is doing a job that would otherwise have to be performed by a government entity, whether local, regional, or national. Specifically, that role has to be done by proxy of the 501(c)(3) under a contract, not just voluntarily. Under that theory, if a defense contractor organized as a nonprofit corporation, had no owners nor private benefit, and contractually conducted a purpose exclusive to a contract with the gov't in lieu of the gov't doing the work themselves, then maybe. Not likely to ever happen, but conceivable!
@user-ee1vz3yl8f
@user-ee1vz3yl8f 7 ай бұрын
is the religious category only contains Christianity ?
@FoundationGroup
@FoundationGroup 7 ай бұрын
Not at all. As long as the adherents of the religion sincerely hold to a set of beliefs, and the practices of the religion do not violate existing laws, then it probably would qualify as a religious charity.
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