A 501(c)(3) organization is a US federal tax-exempt nonprofit entity formed for charitable, educational, religious, or scientific purposes. It enables tax-deductible donations, prohibits private inurement (earnings benefiting individuals), and limits political lobbying. Key requirements include IRS Form 1023 filing, a board, and public-benefit activities.

Key Aspects of a 501(c)(3) Nonprofit

Tax Exemption: Exempt from federal income tax.
Tax-Deductible Donations: Contributions from donors are tax-deductible.
Purpose: Must serve charitable, religious, educational, scientific, or public safety purposes, such as operating a school, church, or charity.
Restrictions: Cannot support political campaigns or be operated for the benefit of private interests.

Nonprofits are different from businesses because they do not have owners and do not distribute profits to individuals.