A 501(c)(3) is a public charity, meaning that at least one third of its income must come from public donations. A private foundation is usually funded by a single individual or a small pool of individuals, such as the Bill and Melinda Gates Foundation.Difference Between 501(c)(3) Public Charity and Private Foundation
501(c)(3) Public Charity vs Private Foundation FAQs
A 501(c)(3) organization is a non-profit organization with tax exempt status that is dedicated to the general well-being of society.
A 501(c)(3) is a public charity, meaning that at least one third of its income must come from public donations. A private foundation is usually funded by a single individual or a small pool of individuals.
A 501(c)(3) organization is tax exempt so long as it remains true to its stated mission and remains compliant with the IRS.
501(c)(3) is the internal revenue code (IRC) section for organizations with tax exempt status. 501(c)(3) falls under internal revenue code 501(c).
To be eligible for 501(c)(3) status, an organization must be organized and operated exclusively for religious, charitable, scientific, literary, education, testing for public safety, or to prevent cruelty to children or animals purposes. Additionally, the organization must not benefit any private parties and must be non-profit.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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