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Tax-Exempt Status
IRS recognition that an organization does not pay federal income tax on most revenue.
What it means
Tax-exempt status under section 501(c)(3) means the organization doesn't pay federal income tax on donations and most program-related revenue. It also means donors can deduct their gifts. Status is granted via IRS Form 1023 application and confirmed via determination letter. Verify any charity via IRS TEOS search before donating.
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