Are Condo Associations Considered 501(c)(3) Nonprofit Corporations?

Written by True Tamplin, BSc, CEPF® | Reviewed by Editorial Team

Updated on December 14, 2022

Are Condo Associations Considered 501(c)(3) Nonprofit Corporations?

Although condo associations and homeowners associations are often incorporated as non-profits, it is far more rare for the IRS to recognize one as a 501(c)(3) and grant it tax exempt status. 501(c)(3)s, in addition to being non-profit, must also benefit social welfare.

Are Condo Associations Considered 501(c)(3) Nonprofit Corporations FAQs

What is a 501(c)(3) organization?

A 501(c)(3) organization is a non-profit organization with tax exempt status that is dedicated to the general well-being of society.

Are Condo Associations Considered 501(c)(3) Nonprofit Corporations?

Although condo associations and homeowners associations are often incorporated as non-profits, it is far more rare for the IRS to recognize one as a 501(c)3 and grant it tax exempt status.

Is a 501(c)(3) organization tax exempt?

A 501(c)(3) organization is tax exempt so long as it remains true to its stated mission and remains compliant with the IRS.

What does 501(c)(3) mean?

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).

About the Author

True Tamplin, BSc, CEPF®

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.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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