According to the IRS, organizations described in section 501(c)(3) are commonly referred to as charitable organizations. To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.
The organization must not be organized or operated for the benefit of private interests. If you are not sure if your organization falls under these designations, contact your CPA, bookkeeper or accounting personnel.