Video: Types of Tax-Exempt Organizations

In this lesson, Nick Palazzolo, CPA, dives into the realm of tax-exempt organizations, breaking down the various types and what makes each unique. He starts with a detailed look at the most familiar category, the 501c3, used by many non-profits such as charities, churches, and educational institutions, underlining their eligibility for receiving tax-deductible donations. Nick then deciphers the less common 501c1s and 501c2s, explaining their specific roles and tax implications—from federal credit unions to holding companies for tax-exempt assets. Along the way, he sprinkles in helpful hints and tips, including the importance of saving receipts for tax deductions and prioritization for exam preparation. This lesson is filled with practical knowledge on how these entities operate within the tax code and interact with one another, tailored to give a clear understanding of their purposes and benefits.