Knowing the different types of nonprofit charitable organizations will help you determine how to raise funds for them without violating IRS rules. Section 501(c) of the Internal Revenue Code lists 29 types of nonprofits that are exempt from certain federal taxes. Charitable organizations are covered by 501(c) Section 501(c) of the Internal Revenue Code lists 29 types of nonprofits that are exempt from certain federal taxes.
Category: Charity & Fundraising
Sadly, there are people who take advantage of others by posing as a nonexistent nonprofit organization. Donors need to ensure the legitimacy of a charity. They need to do diligent research to avoid scams.
Nonprofits also need to build on prospective and active donors' trust by securing voluntary accreditation. Publishing formal financial reports or creative audiovisual presentations on fundraising events and updates for transparency purposes will also help establish a charity's credibility.