For tax purposes, these are nonprofit organizations which must meet certain criteria to qualify for the tax-exempt status under the Internal Revenue Code. They are also referred to by the Code section that applies to them Section 501(c)(3) organizations. A contribution to these organizations is generally tax-deductible.
An institution established for the public good or to help those in need. Most charitable organizations are 501(c)(3) organizations whose income is not used for the gain of persons with an interest in the organization. Funds received by a charitable organization must be used only in support of its mission and operation. The myCFO Foundation currently only makes grants to 501(c)(3) organizations. Within that definition, the Foundation makes grants only to certain types of 501(c)(3) public charities-i.e., 509(a) (1), (2), and (3) public charities. 509(a)(1) public charities include churches, schools, hospitals and organizations that receive 1/3rd of its support from the public in the form of gifts. Section 509(a)(2) public charities are those that receive 1/3rd of their support from service fees and gifts. Section 509(a)(3) public charities are supporting organizations-organizations that have a significant relationship with one or more of the public charities mentioned above in Sections 509(a)(1) and (2).