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Starting a Nonprofit:
Who is eligible for 501(c)(3) status?
There are three components for an organization to be
exempt from federal income tax under section 501(c)(3)
of the IRS. A not-for-profit organization must be
(1)organized and (2) operated exclusively for (3) one or
more exempt purposes.
What is a 501(c)(3) Nonprofit Organization?
501(c)(3) organizations must be established and
operated for one or more of the following purposes (most
common purposes in bold):
- Charitable
- Educational
- Religious
- Scientific
- Testing for public safety
- Literary
- Fostering national or international sports
competition
- Preventing cruelty to children or animals
For more information, see the IRS brochure:
Applying for 501c3 Tax-Exempt Status
Alternatives to Starting Your Own 501(c)(3)
Nonprofit Organization
If you are not sure you are ready to take on all the
obligations of running a 501(c)(3) organization you may
want to consider starting a new program within an
existing nonprofit. You can:
- Contact other nonprofits in your area who
provide similar services and inquire if they might
be interested in partnering with you to add a
program that will meet the unmet community needs you
have identified.
- Identify another 501(c)(3) to be serve as your
fiscal agent. The
Colorado Nonprofit Development Center is one
organization that provides this service.
444 Sherman Street Suite 102,Denver, CO
80203-4430
303.623.1540
800.516.6284
f: 303.623.1567
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