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                                                                                        Exempt Organization Types

Charitable Organizations — IRC 501(c)(3)

Organizations that are organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational or other specified purposes.

Churches & Religious Organizations — IRC 501(c)(3)

Churches and religious organizations are among the charitable organization that may qualify for exemption from federal income tax under Section 501(c)(3).

Private Foundations — IRC 501(c)(3)

Private foundations typically have a single major source of funding (usually gifts from one family or corporation) and most primarily make grants rather than directly operate charitable programs.

Political Organizations

A party, committee, association, fund or other organization organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function.

Other Nonprofits

Organizations meeting specified requirements may qualify for exemption under subsections other than Section 501(c)(3). These include social welfare organizations, civic leagues, social clubs, labor organizations and business leagues.

 What Is a Nonprofit Financial Sustainability Plan?

According to the National Council of Nonprofits, a nonprofit financial sustainability plan is a plan that allows a nonprofit to sustain itself over the long term so that it is able to continue to support its mission. The plan may involve the following:

Financial sustainability - Financial sustainability means finding a way to use resources in a way that prevents their depletion.

Leadership succession planning - Leadership succession planning focuses on setting parameters on how to choose new executive directors, board members, and other nonprofit leaders.

Strategic planning - Nonprofit strategic planning focuses on creating a transparent and well-informed plan, listening to the community you serve, envisioning how you want your organization to grow over time, establishing a framework to turn your vision into reality, executing your plan, and evaluating the success of your plan.

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