The IRS defines a charitable organization as an association that operates in a not-for-profit capacity. A qualified charity must operate as exempt from federal taxation. Charities may be run by religious, scientific or educational groups, or by organizations that foster the arts or international cooperation.
Tax-Exempt Status
A tax-exempt charitable organization must file a federal informational tax return if its receipts are in excess of $25,000 in a given year (see Resources below).
Distress Relief
Charitable organizations like the American Red Cross focus on providing relief to distressed populations, such as those in poverty-stricken locations or disaster areas.
Education and Science
Qualified charities exist to further educational opportunities for underprivileged populations and provide enhancements to scientific and medical research. Individuals or stockholders may not realize earnings from such organizations.
Civil Rights
Charitable organizations such as The American Civil Liberties Union (ACLU) defend civil rights and combat discrimination.
Non-Qualified Organizations
Action groups that attempt to influence voters to register and support a particular candidate are not qualified charitable organizations.
