SUMMARY TABLE OF TYPES AND TAX TREATMENT 

OF SECTION 501(C) ORGANIZATIONS

Prepared by the Staff of the 

JOINT COMMITTEE ON TAXATION 

April 20, 2005 

JCX-30-05 
Types and Tax Treatment of Section 501(c) Organizations 

Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(1) 

Corporations organized under Act of Congress 

1934 U.S. instrumentality No Generally No Only if exclusively for public purposes No 

501(c)(2) Title holding corporations 1916 

Holding title toproperty foranother exempt organization 

Yes Generally No No No 

501(c)(3) Charitable organizations 1894 

Religious,charitable,scientific, educational, etc. 

Yes 

Generally No (but private foundations are subject totax on net investment income) 

Yes Yes

Ye

or

ch

org

501(c)(4) Social welfare organizations 1913 

Promoting the common good and general welfare of people of a community

Yes Generally No No Yes 

1 
Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(5) 

Labor, agricultural,and horticultural organizations 

1909 

Betterment ofthe conditions of those engaged inlabor, education, or horticulture 

Yes Generally No No Yes 

501(c)(6) 

Business leagues,chambers of commerce, tradeassociations, etc.

1913 

Improvement of conditions in one or more lines ofbusiness 

Yes Generally No No Yes 

501(c)(7) Social clubs 1916 Social or recreational Yes Yes No Yes 501(c)(8) 

Fraternal beneficiarysocieties

1894 

Fraternal activities andpayment of life,sick, accident,or other benefitsto members 

Yes Generally No

Only if used forcharitablepurposes 

No 

2 
Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(9) 

Voluntaryemployees’ beneficiaryassociations

1928 

Provides for payment of life,sick, accident,or other benefitsto members or dependents, etc. 

Yes Yes No

Yes (except for payments of life, sick, accident or other benefits to members) 

501(c)(10) 

Domestic fraternal societies

1969 Fraternal activities Yes Generally No Only if used for charitable

purposes 

No 

501(c)(11) 

Teachers’ retirement fundassociations

1928 

Payment of retirement benefits toteachers 

Yes Generally No No Yes, generally 

501(c)(12) 

Benevolent life insuranceassociations, rural cooperatives, etc.

1916 

Activities of amutuallybeneficial nature 

Yes Generally No No No 

501(c)(13) Cemetery companies 1913 

Operation of cemetery company or burial andcremation 

Yes Generally No

Only under certain circumstances(but not for estate and gifttax purposes) 

Yes 

3 
Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(14) 

State creditunions and mutual reserve funds 

1951 

Operating creditunion for mutualpurposes 

Yes Generally No No No 

501(c)(15) 

Certain small insurancecompanies

1916 

Providing insurance tomembers at cost

Yes Generally No No No 

501(c)(16) Crop-financing corporations 1928 

Financing of crops for section 521 farmers’ cooperative marketing associations

Yes Generally No No No 

501(c)(17) 

Supplemental unemployment benefit trusts 

1960 

Payment of supplemental unemployment compensation benefits 

Yes Yes No No 

501(c)(18) Funded pension trusts 1969 

Trust that forms part of a pension plan funded only byemployee contributions 

Yes Generally No No No 

4 
Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(19) Veterans’ organizations 1972 

Organization of veterans; provision of insurance andother benefits 

Yes 

(but certain 

insurance

premium 

income

excluded 

from UBTI) 

Generally No 

Limited to certain organizations ofwar veterans for income and gifttaxes and to organizations incorporated byAct of Congress for estate tax 

Yes 

501(c)(20) 

(expired for 

taxable years

beginning

after June 30, 

1992) 

Qualified grouplegal services plans 

1976 

Provision of legal services benefits 

Yes Yes No No 

501(c)(21) Black lung benefits trusts 1977 Provision of black lung benefits Yes Generally No No No 501(c)(22) Multiemployer Plan trusts 1980 

Payment of withdrawalliability andwithdrawal-typepayments to plans 

Yes Generally No No No 

5 
Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(23) 

Pre-1880 veterans’ organizations 

1982 

Organization of veterans; provision of insurance andother benefits 

Yes Generally No

Limited to certain organizations ofwar veterans for income gifttaxes and to organizations incorporated byAct of Congress for estate tax 

No 

501(c)(24) Employee Trusts 1986 

Used in efforts to recover from an employerthat terminatedits pension planassets sufficient to providecertain planbenefits 

Yes Generally No No No 

501(c)(25) 

Multi parenttitle holding organizations 

1986 

Hold title toassets for multiple parentexempt organizations 

Yes Generally No No No 

6 
Section

of 

1986 Code 

Description 

of 

Organization 

Year 

Exemption 

was

Introduced

General 

Nature of 

Activities 

Subject

to 

UBIT 

Taxed 

on 

Investment 

Income

Contributions 

Generally 

Deductible as 

Charitable 

Contributions 

Subject to 

Private 

Inurement 

Restriction

R

E

A

501(c)(26) 

High-risk individuals health carecoverageorganizations 

1996 

Coverage of medical care to certain highrisk individuals Yes Generally No No Yes 

501(c)(27) 

State-sponsored workmens’ compensation insuranceorganizations 

1996 

Established by aState to reimburse members for losses arising under the workmens’ compensation acts

Yes Generally No No No 

501(c)(28) 

The National Railroad Investment Trust 

2001 

Manage and invest certainassets of Railroad Retirement System

Yes Generally No No No No

7