Special preference is given to NPOs that specifically exist to assist members of the community who have been classified as “underprivileged” by the IRS. Such community members will likely consider the benefit of the work of these NPOs to be of greater value than those who enjoy ample opportunities elsewhere. Working to serve the underprivileged can be hugely rewarding, and the impact of the work done is immeasurable.
Groups considered by the IRS as being classically underprivileged are:
- The elderly – those over the age of 65, living in and out of public programs or nursing homes
- Minors – especially those deemed part of an “at risk” group
- Citizens living on a low income – “low income” is defined as people who make up to 2 times the federal poverty level in a given year
Simple overarching categories of racial or social groups are not considered underprivileged by the IRS, despite evidence that some low-income or “at-risk” populations are largely made up of such groups.
It may be the case that an organization that ministers to the needs of one of these demographics may also serve the needs of another. Through mission statements that are targeted to the assistance one of these groups, not only is demonstrable public good being accomplished, but nonprofit status approval by the IRS becomes that much easier.
