# 501(c)(3) organization

> 501(c)(3) organization — A nonprofit organized and operated exclusively for the exempt purposes section 501(c)(3) names — charitable, educational, religious, literary, scientific and the like — none of whose earnings may benefit a private shareholder or individual. It has no owners and no equity to sell.

Source: https://lopifi.com/glossary/501-c-3-organization
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 501(c)(3) organization?** In accounting, 501(c)(3) organization means a nonprofit organized and operated exclusively for the exempt purposes section 501(c)(3) names — charitable, educational, religious, literary, scientific and the like — none of whose earnings may benefit a private shareholder or individual. It has no owners and no equity to sell.

## Words this system refuses for it

- nonprofit unqualified (a state-law status; not every nonprofit is exempt under 501(c)(3))

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** equity