02/28/2022

501(c)(3) vs. 501(c)(6)

What you need to know

The 501 nonprofit designations set by the Internal Revenue Service are some of the most important classifications for associations to know about, as they spell out what a nonprofit organization can do within its regulatory structure.

While these designations vary from 501(c)(1) to 501(c)(29), the two most common designations that those in the association space might run into fall into two categories:

• 501(c)(3). An organization generally focused on greater-good goals such as religious, educational, charitable, or scientific needs.
• 501(c)(6). A business league or chamber of commerce. Associations generally fall under this category.

Beyond designating what these organizations do, these specifications also help to broadly articulate how they can legally operate. Read on to learn how.

Please select this link to read the complete article from Associations Now.