What other 501(c) organizations are there (besides 501 (c)(3) organizations) and how can they receive foundation funding?
IRS Section 501(c)(3) is the section of the tax code that defines nonprofit, charitable (as broadly defined), tax-exempt
organizations; 501(c)(3) organizations are further defined as public charities, private operating
foundations, and private non-operating foundations.
However, there are also many other types of tax-exempt organizations that get classified as other than a 501(c)(3). Two good sources for information on other section 501(c) organizations can be located in:
- IRS Publication 557: "Tax Exempt Status for Your Organization" (http://www.irs.gov/pub/irs-pdf/p557.pdf).
The fourth chapter of IRS Publication 557, "Other Section 501(c) Organizations", is the best source for learning about the many types of 501(c) organizations. IRS Publication 557 is also available for free by calling (800) 829-3676.
- The Online Compendium of Federal and State Regulations for U.S. Nonprofit Organizations offers a "Tax-Exempt Organization Reference Chart (http://www.muridae.com/nporegulation/documents/exempt_orgs.html) that can be accessed quickly.
Most foundations require 501(c)(3) status of their grantees to fulfill the IRS charitable purpose requirements.
But, in rare instances some foundations will fund other types of organizations if they demonstrate
"expenditure responsibility" to the IRS. The Center's Guide to Funding Research defines expenditure responsibility this way:
"In general, when a private foundation makes a grant to an organization that is not classified
by the IRS as a 'public charity,' the foundation is required by law to provide some assurance that the funds
will be used for the intended charitable purposes. Special reports on such grants must be filed with
the IRS. Most grantee organizations are public charities and many foundations do not make 'expenditure
responsibility' grants."
See chapter one of the Foundation Center's A Nonprofit Organization
Operating Manual, for more information. This publication is available for free use at
Center libraries, and some Cooperating Collections.
We know of no listing of foundations or organizations that fund organizations without 501(c)3 status.
However, you are welcome to read through the FAQ topics located in the Get Started section of our Web
site, especially the FAQ entitled "How do I find out about grants for my subject area or field of interest?" You can use Foundation Center directories to locate funders that might be interested in your project area, and then see
if they would consider a non-501(c)(3).
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