32 Types of Nonprofits

There are five categories of nonprofits, including charitable, religious and church, private foundations and political organizations. Some types of nonprofits fall under miscellaneous, such as Federal Credit Unions. Within these categories, there are dozens of 501 tax-exempt statuses. In this guide, we walk you through 32 types of nonprofits, how to choose the right one for your organization and frequently asked questions you may be asking.
What Is a Nonprofit?
Nonprofits are organizations that do not operate for the purpose of making a profit for their owners. Instead, they exist to provide a benefit to the public, its members or its beneficiaries. Earnings are either donated to other nonprofits, to meet beneficiaries’ needs, or invested back into the nonprofit to further its mission. Some nonprofits obtain funding through donors while others do so via contributions from members, grants and the sale of products or services.
While dozens of nonprofit exempt statuses exist, they generally fall under five categories, including charitable organizations, religious or church organizations, private foundations and political organizations. Some common nonprofit tax-exempt statuses include 501(c)(3) charities, 501(c)(4) community social welfare organizations and 501(c)(6) business leagues.
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Choosing the Right Nonprofit Type
When choosing the type of nonprofit to apply for, consider the mission of the organization, who it serves and who organized the organization. Many nonprofit designations put restrictions on these factors and, so, these restrictions should guide you as you choose the right type of nonprofit designation for your organization.
Generally, a nonprofit status, such as a 501(c)(4) or a 501(c)(6), is specifically designated for a certain organizational mission, albeit in a broad sense. For example, a 501(c)(4) is designated for community social welfare organizations and a 501(c)(6) is designated for business leagues. If your organization’s mission aligns with these descriptions, it is a good idea to consider applying for one of these tax-exempt statuses.
In addition, consider who your organization serves. Some tax-exempt statuses put restrictions on the types or locations of beneficiaries the nonprofit can serve. For example, a 501(c)(9) (a voluntary employees’ beneficiary association) can only represent a group of individuals who have a common employer or are included in the same union or collective bargaining agreement and enter into membership (and so become a beneficiary) on a voluntary, not compulsory or automatic, basis. Likewise, 501(d) (religious and apostolic association) organizational members must be part of a designated religious group and community.
Finally, when deciding which nonprofit status to apply for to receive tax-exempt status for your organization, consider who organized the organization. Some nonprofit statuses put restrictions on who is allowed to begin such organizations. For example, a 501(c)(1) organization (which includes federal credit unions) can only be created by an act of Congress. Therefore, a private citizen should not attempt to apply for this nonprofit designation.
501(c)(1): Corporations Organized Under Act of Congress
This type of tax-exempt organization is organized under an Act of Congress. Some examples of this type of nonprofit are Federal Credit Unions, Federal Home Loan Banks, Federal Reserve Banks and Federal National Mortgage Associations. Such a corporation should be an instrument of the United States. No forms are required to obtain a 501(c)(1) exemption. Contributions can be made if the nonprofit’s mission is exclusively for public purposes.
501(c)(3): Charitable, Religious or Educational Organizations
An organization may qualify for 501(c)(3) status if it is run for religious, charitable, scientific, literary or educational purposes. It may also qualify if it operates to advance national or international sports competitions, test for public safety or prevent cruelty to animals or children. Examples include schools, Boys and Girls clubs, churches and elderly care homes.
Interested in starting a 501(c)(3)? Check out the step-by-step instructions on how to start a 501(c)(3) nonprofit.
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Click on the state below to get started.Start Now501(c)(4): Community Social Welfare Organizations
An organization may qualify for 501(c)(4) status if it does not earn a profit and is run to promote social welfare. The organization must benefit the community as opposed to employees or a corporation or other private group. In contrast to a 501(c)(3) nonprofit, a 501(c)(4) nonprofit has leeway to engage in political activities and lobbying provided that such activities advance its mission. Some examples include volunteer fire departments and civic associations.
501(c)(5), 501(c)(16): Labor, Agricultural and Horticultural Organizations and Cooperative Organizations To Finance Crop Organizations
Both 501(c)(5) and 501(c)(16) organizations serve farmers and/or those who cultivate crops and are labor, agricultural or horticultural organizations. Here is a closer look at each:

501(c)(5). A 501(c)(5) organization works with animal or vegetable life and includes land cultivation, crop or aquatic resource harvesting or raising livestock. It aims to improve the working conditions of the workers in addition to creating more efficient working systems and improving the final products.

501(c)(16). A 501(c)(16) finances crop operations of its members or other producers (such as a farmers cooperative association). For example, it might fund farm equipment, livestock, soil, warehouses and more.

501(c)(6): Business Leagues
This type of exempt status covers business leagues, real estate boards, professional associations and chamber-of-commerce or board-of-trade organizations. To qualify for 501(c)(6) status, the organization must be supported by membership dues and income related to its exempt purpose.
501(c)(7), 501(c)(8), 501(c)(10): Lodges, Fraternities, Societies and Recreation Clubs
501(c)(7), 501(c)(8) and 501(c)(10) nonprofits all either comprise the structure of a lodge, fraternity, society, recreation club and similar organizations or provide resources to them. Here is a closer look at each, including their differences:

501(c)(7). These nonprofits are social and recreation clubs. Social activity is their primary purpose. Some examples of 501(c)(7) nonprofits include college fraternities, alumni associations, hobby clubs and country clubs.

501(c)(8). These types of nonprofits are lodge or fraternal organizations that also provide for the payment of life, sickness, accident or other benefits to members of a lodge system (an organization made up of local branches and chartered by a parent organization).

501(c)(10). These organizations devote their earnings to charitable, fraternal or other purposes existing within a lodge system. They do not provide benefits to their members, such as life or accident insurance.

501(c)(9): Voluntary Employees’ Beneficiary Associations
A 501(c)(9) nonprofit funds the payment of life, sickness, accident or other benefits to its voluntary members and/or their dependents. Voluntary employee organizations are made up of members who have a common employer, union or collective bargaining agreement, but are not required or automatically entered into the organization as part of their employment. Membership is also not based on levels of compensation. An example of a 501(c)(9) is a labor union.
501(c)(11): Teachers’ Retirement Fund Associations
As denoted by its name, this type of nonprofit is a teachers’ association created and operated for the purpose of paying retirement benefits to teachers.
501(c)(12), 501(c)(15), 501(c)(26), 501(c)(29): Insurance and Services at Cost
These nonprofit statuses offer beneficiaries insurance and other resources at lower cost to serve a community or its members. Here is a closer look at each:

501(c)(12). These nonprofits are local benevolent life insurance associations, mutual irrigation and telephone companies and similar organizations. Members of these organizations receive services at the lowest possible cost and at least 85% of its income comes from its members.

501(c)(15). This designation is for small insurance companies that are based in small communities and receive mutual benefits from each other. They offer members insurance at cost along with other essential services such as property damage, burial and funeral benefits.

501(c)(26). The 501(c)(26) tax-exempt designation is organized by the state and provides insurance or service arrangements for high-risk individuals.

501(c)(29). This tax-exempt status is part of the Affordable Care Act and comprises nonprofit health insurance issuers who receive loans or grants under Medicare or Medicaid services co-op program tax exemption.

501(c)(13): Cemetery Companies
Cemeteries or corporations chartered for the purpose of disposing of human bodies via burial or cremation fall into this 501(c) category. These organizations cannot operate a mortuary but may sell monuments, markers, vaults and flowers meant for the cemetery.
501(c)(14): State-Chartered Credit Unions and Other Mutual Financial Organizations
These organizations are organized and operated under the Federal Credit Union Act. In addition to state-chartered credit unions and other financial organizations, other mutual financial organizations that qualify must be corporations, not have capital stock and be organized before September 1, 1957.
They also must not earn a profit. Instead, funds earned by a 501(c)(14) nonprofit must be reserved for and issued (in the form of shares or deposits) into domestic building and loan associations, nonprofit cooperative banks or mutual savings banks.
501(c)(17), 501(c)(18), 501(c)(22): Pensions and Unemployment Trusts
501(c)(17), 501(c)(18) and 501(c)(22) nonprofits all serve in the area of unemployment or pension trusts. Here’s a closer look at each one:

501(c)(17). A 501(c)(17) nonprofit is a trust or trusts created to pay supplemental unemployment compensation benefits without discrimination against any employee, irregardless of their salaries.

501(c)(18). 501(c)(18) nonprofits are pension trusts begun before June 25, 1959 and provide for the payments of pension plan benefits. These plans are funded only by employees.

501(c)(22). 501(c)(22) nonprofits are organized by the United States government and apply to withdrawal liability payment funds. They provide funds to meet the liability of employers who are withdrawing funds from multiemployer pensions.

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501(c)(19), 501(c)(23): Veterans Organizations Before and After 1880
Veterans organizations in the United States either qualify for tax-exempt status as a 501(c)(19) or a 501(c)(23). A 501(c)(19) organization serves present and past war veterans. In contrast, a 501(c)(23) organization was created before 1880 and serves the same community for the purposes of providing insurance and other benefits to war veterans. These nonprofits can also be veterans auxiliary, foundations or trust organizations.
In both, 75% of its members must be past or present Armed Forces members. Spouses and family members can also be served via these organizations. Family members who served must not be farther removed than two degrees of consanguinity from the veteran member.
501(c)(21): Black Lung Benefit Trusts
A 501(c)(21) status is held by Black Lung trusts. The Federal Black Lung Benefit Act of 1969 required coal miners to pay a monthly compensation to miners who were fully disabled due to pneumoconiosis, or black lung disease, after being exposed to coal dust during their mining work. It was amended in 1977 to put these funds into a trust. Surviving spouses can be compensated if they were widowed fully or in part due to black lung disease.
501(c)(27): State-Sponsored Workers’ Compensation Organizations
A 501(c)(27) organization must be formed and operated to return extra income to its workers’ compensation policyholders on a scheduled basis. It also must have been established before June 1, 1996 to cover workers’ compensation payments. The membership should be made up of people who issue workers’ compensation insurance and people and government organizations that self-insure against such claims.
501(c)(28): National Railroad Retirement Investment Fund
The National Railroad Retirement Investment Trust is a tax-exempt entity that became effective in February 2002. It is a trust that funds the retirement benefits of railroad workers and their dependent family members. As a pay-as-you-go pension system that pays out payments to its beneficiaries, railroad retirement assets are invested to ensure the retirement benefits of participants.
501(d): Religious and Apostolic Associations
Some religious communities are tax exempt if they share a common or community treasury. To fund the community treasury, the community or association must engage in a business for the common benefit of its members. To qualify for this status, the organization must document itself as a religious organization with members belonging to a church or church group. Entire pro rata shares must be disclosed on the tax filings of each community member.
501(e): Cooperative Hospital Service Organizations
A 501(e) organization offers data processing, purchasing, warehousing, billing and collection, food, clinical, industrial engineering, laboratory, printing, communications, record center and/or personal services to hospitals. A 501(e) service entity must serve at least two hospitals, be part of a larger complex (i.e., a university hospital) or be owned and operated by qualifying government entities.
501(f): Cooperative Service Organizations of Operating Educational Organizations
A 501(f) organization serves educational organizations by pooling together and investing money from its members into stocks and securities. It then reinvests the income or dividends made from the investments to the same members, minus expenses.
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501(k): Publicly Available Child Care Organizations
A 501(k) organization provides child care to children outside of their homes, thereby enabling people (such as their parents) to be gainfully employed. The services provided by this type of nonprofit should be available to the general public.
501(n): Charitable Risk Pools
Charitable risk pools qualify as 501(n) tax-exempt organizations if they are organized and operated for charitable purposes and if they pool the insurance risks of its members. Such organizations must also provide information to their members concerning loss control and risk management, must have obtained at least $1,000,000 in startup capital from non-charitable organizations and must not pool risk concerning medical malpractice.
Bottom Line
With dozens of tax-exempt 501 statuses available, it can be difficult to choose the right nonprofit type for your organization. To make it easier, when deciding the best fit for your entity, consider your mission, who is organizing the organization and who the nonprofit will serve. For more information, learn how to start a nonprofit.
Frequently Asked Questions (FAQs)
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