Organizations must be recognized as a 501(c)(3) Public Charity by the Internal Revenue Service (IRS) – either independently or under a group exemption – or be a public library to be eligible for TechSoup and our corporate partners’ nonprofit programs.
The IRS distinguishes in granting tax exemption to nonprofit organizations based on their organizational and operational structure. In order to qualify as a 501(c)(3) charitable entity, an organization must be both organized and operated exclusively for charitable purposes, and no part of its net earnings may inure to the benefit of any private individual. Such entities are further prohibited from engaging in any political campaign activity, and, depending on whether they are organized as public charities or private foundations, will either be limited in their ability to, or entirely prohibited from, engaging in attempts to influence specific legislation.
These restrictions on a 501(c)(3) charity’s organization and operation distinguish it from other tax-exempt entities. While the IRS does provide tax benefits for other types of nonprofits (see list here), these organizations have significantly more latitude in their operations and are not subject to the same strict standards as 501(c)(3) charities.
Donors typically prefer the assurance that their contributions will not be utilized for social or political purposes, and such an assurance can only be obtained through an IRS certification of its status as a 501(c)(3). Therefore, programs available through TechSoup are provisioned with a strict focus on 501(c)(3) public charities per agreements with our corporate partners. Organizations with other statuses fall outside of that scope.
Please note that in some cases, your organization may be able to apply for exemption under Section 501(c)(3). If you believe your organization meets the requirements under Section 501(c)(3), then we encourage you to seek exempt status with the IRS. Once you receive a determination letter from the IRS indicating your organization meets the requirements under Section 501(c)(3), TechSoup should be able to qualify your organization.
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