501(C)(3) is a section of the Internal Revenue Code that confers tax-exempt status on certain types of nonprofit entities. A donor sending funds to an entity with this designation can claim the donation as a tax deduction. The general types of nonprofits that can be awarded 501(C)(3) status are as follows:
Testing for public safety
Fostering of national or international amateur sports
Prevention of cruelty to animals and children
This type of organization is closely regulated. The ability to expend funds on lobbying activities is limited, and the endorsement of political candidates is forbidden.