501(c)(3) Non-Profit Status
The cluster discusses the legal distinctions, requirements, and implications of 501(c)(3) tax-exempt charitable status versus other non-profits, including eligibility for organizations like foundations, open source projects, and debates on tax exemptions and IRS rules.
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"non-profit" is a tax status, that's all
Because it's a 501(3)(c) non-profit foundation? Why do you ask the question, this is standard stuff in the U. S.?
A 501(c)(3) isn't a startup. The behavior is still bad, obviously.
You seem to confusing non-profit status with charitable (501c3) status; a charity is a specific subtype of tax-exempt nonprofit (most notably different from most other nonprofits in that, in addition to the organization being tax-exempt, contributions to the organization are tax-deductible for the donors.)
What you think of them is mostly irrelevant for their status. They're a nonprofit advancing education from the IRS pov.
You are correct. There are private and public non-profits. Similar comments further down the thread.
The non-profit is presumably tax-exempt, which doesn't help your point.
It's not a private organization, it's a charity. In exchange for not paying taxes, they've given up the right to spend the money as they see fit.
The FSF is a tax-exempt 501(c)(3) charity; if it would institute policies to benefit a single for-profit entity, the inevitable IRS audit would be excruciatingly painful and possily result in jail time for directors.
501c3 offers one narrow form of tax exempt status for a very specific type of non-profit organization with specific privileges and duties. Every organization is unique and many non-profit, tax-exempt, and even charitable organizations exist outside of that specific framework.If they're not soliciting donations from you I'm not sure why you'd care about their federal tax status.