501(c)(3)
is the designation most frequently sought by nonprofit housing development
organizations because contributions to organizations with 501(c)(3)
status are eligible tax deductions for donors.
The
IRS has established standards for 501(c)(3) organizations. These
are:
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The
organization must be organized for at least one of the following
purposes: religious, charitable, scientific, literary, educational,
testing for public safety, or prevention of cruelty to animals; |
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None
of the net earnings of the organization may benefit private individuals; |
|
No
substantial part of the organizations activities may be
devoted to lobbying (influencing legislation), and the organization
may not participate in or intervene in political campaigns on
behalf of candidates; and |
|
The
group must be organized in its article of incorporation for charitable
and/or educational purposes. |
A
501(c)(3) nonprofit must operate as a charitable or educational
organization, which includes purposes such as:
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Relief
of the poor; |
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Lessening
burdens of government; |
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Lessening
community tensions; |
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Eliminating
prejudice; |
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Defending
human and civil rights; or |
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Promotion
of social welfare. |
|