What is the difference between nonprofit and 501(c)3?

Nonprofit organizations are entities that are organized for a specific purpose other than generating a profit. They can be organized as a charitable, educational, scientific, religious, or other type of organization that provides services or benefits to the public. Nonprofits can be registered with the state where they are located, but that registration does not necessarily make them exempt from federal taxes.

501(c)3 is a specific tax designation given by the Internal Revenue Service (IRS) to nonprofits that meet certain criteria. These organizations are exempt from paying federal income taxes and can receive tax-deductible contributions from donors. In order to be eligible for 501(c)3 status, a nonprofit must be organized and operated for charitable, educational, religious, scientific, or literary purposes, and it must not engage in political campaigning or lobbying activities.

In summary, all 501(c)3 organizations are nonprofits, but not all nonprofits have 501(c)3 status. Nonprofits can be organized for many different purposes, but only those that meet the IRS criteria for 501(c)3 status are eligible for tax-exempt status and tax-deductible donations.