A 501(c)(3) is the ugly government tax chitty way of calling a collective effort of people, aka a "company," a charity. But it sounds way more edgy if you call it a number. With a letter. Then a number.
Double 0-7. Way cooler than "James." Right? Well, 501(c)(3) is the United States legal code number that created space for Federally tax exempt charities. And there are 29 flavors of charitable category that they address. The government is working hard to catch up to Baskin Robbins’ numbers, but they’re not there yet.
Specifically, some of those 29 flavors include: religious organizations, scientific, literary or educational charities, charities for amateur sports, testing for public safety, charities involving cruelty to children, women, and animals (yeah, these are, uh... anti-).
So why the special treatment? Well, if a 501(c)(3) follows the many strict rules to maintain its non-profit status, then donors giving money to it get to deduct that money right off the top when doing their taxes. Like… if a taxpayer is paying 40 percent marginal tax, and they donate a dollar, that dollar only cost them 60 cents to donate. The U.S. Government essentially underwrites charitable donations, at least to a point. And that’s a good thing. We need noblesse oblige charities in the world. They do good work. Well, most of them do...
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Finance: What is a 501c3?8 Views
Finance a la shmoop... what is a 501c3.... well it's a charity people and it [Man discussing 501c3 charity]
sounds way cooler if you call it a number and with a letter than a number
right 501cPO...remember 007 yeah, way cooler than just
James right all right well 501c3 is the United States legal code number that
created space for federally tax-exempt charities that's a C there; C for
charity and there are 29 flavors of charitable category that they addressed [Ice cream flavors]
now the government's working hard to catch up to baskin-robbins numbers but
they're not there yet specifically some of those 29 flavors [Girl given an ice cream cone]
include religious organizations, scientific literary or educational
charities, charities for amateur sports, testing for public safety kind of
charities yeah like the crash dummies charities involving cruelty to children [Woman on a swing with a child]
women and animals and yeah most of these are anti so why the special treatment
well if a 501c3 follows the many strict rules to maintain its nonprofit status
then donors giving money to it get to deduct that money right off the top when [Donor gives money to charity]
they're doing their taxes like if a tax payers paying 40 percent marginal tax
and they donate a dollar well that dollar only costs um 60 cents to donate
the US government essentially underwrites charitable donations at
least to a point like they forgive 40 cents of tax in that dollar and that's a
good thing we need noblesse oblige charities in the world they do good work
well most of them do.. [People standing behind charity stalls]
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