Section 501(c)(3) refers to a specific part of the U.S. Internal Revenue Code that designates certain nonprofit organizations as tax-exempt. These organizations must operate for charitable, religious, educational, scientific, or literary purposes. Donations made to 501(c)(3) organizations are often tax-deductible for the donor, encouraging public support. To qualify for 501(c)(3) status, an organization must meet specific requirements set by the Internal Revenue Service (IRS). This includes having a clear mission, adhering to strict operational guidelines, and ensuring that no part of its earnings benefits private individuals or shareholders.