Section 501(c)(3) is a portion of the U.S. Internal Revenue Code (IRC) and a specific tax category for nonprofit organizations. The IRS recognizes thirty types of organizations [nonprofits] that fall in the 501(c)(3) status. Organizations that are be suitable as 501(c)(3) are unique and donations are tax-deductible for donors. The nonprofit organizations that meet the 501(c)(3) requirements are relieved from federal income tax.