Under the Internal Revenue Service (IRS), 501 (C) (3) organizations are organized or operated not for the benefit of private interests. None of the organization’s net earnings may benefit any private shareholder or individual. Read more at this link: http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html
You can find out more about the different non-profit classifications on various links within the IRS website as well.
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