Not-for-Profit Organizations, or 501(c)(3) organizations, are tax-exempt businesses that serve the community. There are 28 types of nonprofit organizations that qualify as a tax-exempt organization from various federal income taxes. Navigating through the intricacies of exempt organizations can be arduous and is best left to a skilled legal team like the tax lawyers at JD Katz: Attorneys at Law. Our proven tax attorneys are dedicated to you and ready to help your nonprofit succeed. Our legal team is proud to serve charities and private foundations in Bethesda, Washington, DC, and across the country.

Types of Tax-Exempt Organizations

The two exempt classifications of 501(c)(3) organizations are as follows:

  1. A public charity, identified by the Internal Revenue Service (IRS) as “not a private foundation,” that normally receives a substantial part of its income, directly or indirectly, from the general public or from the government. The public support must be fairly broad, not limited to a few individuals or families. Public charities are defined in the Internal Revenue Code under Sections 509(a)(1) through 509(a)(4).
  2. A private foundation, sometimes called a non-operating foundation, receives most of its income from investments and endowments. This income is issued to make grants to other organizations, rather than being dispersed directly for charitable activities.

We represent a wide variety of tax-exempt organizations, including business leagues, private foundations, hospitals, health organizations, nursing homes, private schools, pension funds and religious organizations. We secure tax-exempt status for clients and counsel them on general tax issues, investments, unrelated business taxable income issues and prohibited transaction issues. Our tax lawyers help you through every step of the process to obtain and retain your tax-exempt status.

We look forward to working with you. Schedule a free consultation by completing the form above or by contacting us via email or phone at (301) 605-1243.