A 501(c)(3) ​organization must be organized and operated exclusively for one or more of the following purposes:

• charitable
  
• educational
  
• religious
  
• scientific
  
• literary
  
• fostering national or international amateur sports competition
  
• preventing cruelty to children or animals
  
• testing for public safety
  

Prepare Your Own 501(c)(3) Application  is "...a great book, clear and spot-on."

​501(c)(3) Organizations Enjoy the Following Privileges:

• Exemption from Federal Income Tax 
• Exemption from F.U.T.A. (federal unemployment tax)
  
• Tax Deductibility for Donors
  
• Eligible for Government & Foundation Grants 
  
• Eligible for Bulk Mailing Permit 
  
• Gambling Permits (in some jurisdictions)
  
• Credibility
  

501(c)(3) Organizations Must Fulfill the Following Responsibilities:

• Keep Adequate Records 
• File Required Returns 
  
• Provide Donor Substantiation 
  
• Obey Disclosure Laws 
  
• Generate Public Support 
  
• Avoid "Excess Benefits" for insiders
  
• Shun Political Activity 
  
• Limit Legislative Activity 
  
• Limit Unrelated Business Activity
  

...Many of these responsibilities are described in greater detail in Keeping the IRS Happy

501(c)(3) Pro & Con