The Nonprofit Incubator

Compliance Guide for 501(c)(3)
Public Charities
Federal tax law provides tax benefits to nonprofit organizations recognized as exempt
from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). The IRC
requires that tax-exempt organizations must comply with federal tax law to maintain tax-exempt
status and avoid penalties.
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In this publication, the IRS addresses activities that could jeopardize a public charity’s
tax-exempt status. It identifies general compliance requirements on recordkeeping, reporting
and disclosure for exempt organizations described in IRC Section 501(c)(3) that are classified
as public charities. This publication is neither comprehensive nor intended to address every
situation.
To learn more about compliance rules and procedures that apply to public charities exempt
from federal income tax under Section 501(c)(3), see IRS Publication 557, Tax-Exempt Status
for Your Organization, and the Life Cycle of a Public Charity. Also, stay abreast of new EO
information by signing up for the Exempt Organizations Update, a free e-newsletter for
tax-exempt organizations and tax practitioners who represent them. For further assistance,
consult a tax adviser.