LatinWE Foundation is now a501(c)(3) Organization.
A 501(c) organization is a nonprofit organization in the federal law of the United States according to 26 U.S.C. § 501 and is one of 29 types of nonprofit organizations which are exempt from some federal income taxes. Sections 503 through 505 set out the requirements for attaining such exemptions. Many states refer to Section 501(c) for definitions of organizations exempt from state taxation as well. 501(c) organizations can receive unlimited contributions from individuals, corporations, and unions.
For example, a nonprofit organization may be tax-exempt under section 501(c)(3) if its primary activities are charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, preventing cruelty to children, or preventing cruelty to animals.
501(c)(3) tax-exemptions apply to entities that are organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for testing for public safety, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals. The 501(c)(3) exemption also applies for any unincorporated community chest, fund, cooperating association, or foundation that is organized and operated exclusively for those purposes. There are also supporting organizations—often referred to in shorthand form as “Friends of” organizations. 26 U.S.C. § 170, provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501(c)(3) organizations, among others.
Organizations described in section 501(c)(3) are prohibited from conducting political campaign activities to intervene in elections to public office. On the other hand, public charities (but not private foundations) may conduct a limited amount of lobbying to influence legislation. Although the law states that “No substantial part…” of a public charity’s activities can go to lobbying, charities may register for a 501(h) election allowing them to lawfully conduct lobbying activities as long as their financial expenditure does not exceed a specified amount. 501(c)(3) organizations risk loss of tax exempt status if any of these rules are violated.
A 501(c)(3) organization is allowed to conduct some or all of its charitable activities outside the United States. Donors’ contributions to a 501(c)(3) organization are tax-deductible only if the contribution is for the use of the 501(c)(3) organization, and that the 501(c)(3) organization is not merely serving as an agent or conduit of a foreign charitable organization. Additional procedures are required of 501(c)(3) organizations that are private foundations.