What are acceptable purposes for a non-profit corporation?
To qualify for federal tax-exempt status, the non-profit corporation must be organized and operate for a charitable, educational, religious, literary or scientific purpose permitted under 501(c)(3) of the Internal Revenue Code. A ‘charitable’ purpose is defined in section 501(c)(3) as providing services beneficial to the community or the public interest. ‘Civic Clubs’ are also included in the ‘charitable’ category. The ‘educational’ purpose is a broad purpose that allows instruction for both self-development and the benefit of the community. ‘Orphanages’ are also included in the ‘educational’ category. The ‘religious’ category includes general types of religious organizations as well as more formal church institutions.
