What is a 501(c)(3)?

501(c)(3) refers to a section of the US tax code that allows certain non-profit organizations to be exempt from federal income tax. These organizations must be set up and run for specific purposes, such as: Religious Charitable Scientific Educational Literary Testing for public safety Amateur sports competition Preventing cruelty to children or animals This status is granted by the IRS. Organizations with 501(c)(3) status don’t pay federal income tax on eligible activities. Donations to these organizations are often tax-deductible for the donor. If you’re applying for a Novo account as a non-profit, you must already have 501(c)(3) status approved by the IRS.