What are the tax requirements for a 501.3c Organization?

Answer 1

There are books, many in fact, big, long complex ones addressing the many issues your Q leads to. I suspect that you really mean how does one qualify as a tax exempt organization - many of which qualify under the code section you mention and many under others (there are a number of sub codes under 501, not just 1 or C, all of which specify different types of operations). The common thread being they don't really have tax requirements, (although if the income they receive, or expenses incurred is outside their exempt purpose they may), they have requirements to remain not taxable. Not only are there many things that must be done, prohibited activities, there are different tests to prove the funds you handle - (the Co) - is exempt. Very basically, one main one requires proving the source is from a broad community and used for the exempt purpose, the other is that the funds may be from a limited (or even exclusive) party, but were spent within the year received and again on an exempt purpose. These last are generally formed as "Private Foundations" or a PF. All these entities have vigorous and exceptionally detailed reporting requirements in the fed form 990 series (generally at the State level too)...and unlike normal IRS type filings, virtually all their reports are a matter of public record, available on line and reviewed by many public advocates. Corporations, community chests, funds, or foundations having religious, charitable, scientific, testing for public safety, literary, or educational purposes or organized for prevention of cruelty to children or animals, or to foster national or international amateur sports competition (but only if no part of the organization's activities involve the provision of athletic facilities or equipment), are tax-exempt if: ... the organization is organized and operated exclusively for one or more of the purposes specified in the Code: ... the net earnings of the organization don't benefit private shareholders or individuals ... no substantial part of the organization's activities consists of Propaganda or otherwise attempting to influence legislation ... the organization doesn't participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office; and... no substantial part of the organization's activities consists of providing commercial-type insurance Code Sec. 501(m)(1) . An organization is exempt only if it is both organized and operated exclusively for exempt purposes To be exempt, an organization must meet both an “organizational test” and an “operational test”.