The 501(c)(3) designation is that of a charitable organization which serves the public good through education or scientific research.
The IRS includes in its definition of educational nonprofits (IRS-4220 2003):
· Schools such as a primary or secondary school, a college, or a professional or trade school
- Organizations that conduct public discussion groups, forums, panels, lectures, or similar programs
- Organizations that present a course of instruction by means of correspondence or through the use of television or radio
- Museums, zoos, planetariums, symphony orchestras, or similar organizations
- Nonprofit day-care centers
- Youth sports organizations
Except in the case of organizations that are specifically chartered to prevent cruelty to animals, the beneficiaries of an NPO must be human. The people most likely to be served by a particular nonprofit are those within the area surrounding the organization, but could include people throughout the
NPOs offer many benefits, but it is important that they exist to serve everyone, not only an elite group of people. If the group of people the NPO is geared to is considerably small, the IRS may not consider it worthy or approval. If membership or access to an NPO is in any way exclusive, the organization will most likely not be approved for NPO status.[i]
[i] "An otherwise qualifying organization will be disqualified for exemption if it excessively benefits private interests, either through inurement of its net earnings to certain 'insiders' or by primarily benefiting the interests of persons who, though not "insiders," do not comprise a charitable class." -- ibid.
