32 Types of Nonprofits: Essential 2025 Guide

Starting a business that prioritizes social good? Nonprofits can be just as impactful and rewarding as for-profit ventures. But nonprofits come with unique structures, challenges, and tax rules you’ll need to understand upfront.

The IRS recognizes more than 30 types of nonprofits under Section 501(c) of the Internal Revenue Code, ranging from broad public charities like churches and food banks to niche professional associations and veterans organizations. Whether you want to start a public charity, form a trade association, or establish a social club, choosing the right structure determines everything from tax benefits to whether you can accept donations.

This guide covers all 34 major nonprofit classifications, their specific tax implications, and compliance requirements. You’ll learn exactly which structure fits your mission and how to navigate the IRS requirements for each type. Plus, get tips on how to get started with your nonprofit organization. 

What is a nonprofit?

A nonprofit organization (NPO) is a tax-exempt entity organized for public or member benefit under Section 501(c) of the Internal Revenue Code. The IRS grants tax-exempt status to these entities when they serve qualifying purposes like education, charity, religious worship, or social welfare.

While NPOs focus on the greater good, they can still generate revenue. The difference is that profit goes toward supporting the organizations’ missions. Unlike for-profit businesses, nonprofits can’t distribute profits to anyone or anything except advancing the organization.

📚Learn: What Is a Nonprofit? Definition and Types of Nonprofits

Key characteristics of nonprofit organizations

Nonprofit organizations share fundamental characteristics that set them apart from for-profit businesses, including:

• Non-distribution constraint. Profits stay within the organization—they can’t go to members, directors, or officers.
• Mission-driven purpose. Every activity centers around a specific social, educational, religious, or charitable mission.
• Public benefit focus. The organization exists to serve public interest, not private gain.
• Tax-exempt status. Eligible for exemption from federal income taxes under specific IRS code sections.
• Formal structure. Requires official incorporation documents, bylaws, and governance systems.
• Board governance. A volunteer board of directors oversees strategic direction.

Nonprofits vs. not-for-profits: Understanding the difference

Though people use these terms interchangeably, they mean different things for tax purposes: 

• Nonprofits serve the public good and typically qualify for tax-deductible donations. 
• Not-for-profits benefit their members and usually don’t qualify for deductions.

How to choose the right nonprofit structure

Your nonprofit classification impacts everything: tax benefits, governance requirements, fundraising capabilities, and whether you can sell products or services to support your mission. The right structure can mean the difference between thriving and struggling to stay compliant.

Questions to ask before selecting a nonprofit type

These key questions will help narrow down which nonprofit classification best supports your goals:

• What is your primary purpose or mission? Different nonprofit types serve specific purposes—charitable work, social welfare, or member benefits each require different structures.
• Will you seek tax-deductible donations? Only certain nonprofit types, particularly 501(c)(3) organizations, can offer donors tax deductions for their contributions.
• Who will benefit from your activities? Think about whether your organization primarily serves the general public, a specific community, or your own members.
• What funding model will you use? Some structures work better for donation-based funding, while others suit membership dues or service fees.
• Will you engage in political activities? Certain nonprofit types allow lobbying and political advocacy, while others, like 501(c)(3) organizations, face significant restrictions.
• What governance structure do you envision? Different nonprofit classifications require varying levels of transparency and oversight.

Common nonprofit formation mistakes to avoid

Steer clear of these pitfalls when establishing your NPO:

• Choosing the wrong tax-exempt status because you didn’t fully understand IRS requirements
• Failing to establish proper governance structures like bylaws and board procedures from the start
• Neglecting state-level requirements that exist alongside federal regulations
• Setting up inadequate recordkeeping systems for tracking activities and finances
• Assuming all revenue will be tax-exempt—including ecommerce sales or services—without understanding unrelated business income tax
• Overlooking ongoing compliance requirements like annual filings and public disclosures

Not sure which structure fits your mission? A nonprofit attorney or tax adviser can help you navigate the process and stay compliant from day one.

32 types of nonprofit organizations

1. 501(c)(3): Charitable organizations
2. 501(c)(1): Congressional chartered organizations
3. 501(c)(2): Title-holding corporations
4. 501(c)(4): Civic leagues and social welfare organizations
5. 501(c)(5): Labor and agricultural organizations
6. 501(c)(6): Trade and professional associations
7. 501(c)(7): Social and recreational clubs
8. 501(c)(8): Fraternal societies
9. 501(c)(9): Employee beneficiary associations
10. 501(c)(10): Domestic fraternal societies
11. 501(c)(11): Teachers’ retirement fund associations
12. 501(c)(12): Benevolent life insurance associations
13. 501(c)(13): Cemetery companies
14. 501(c)(14): State-chartered credit unions
15. 501(c)(15): Mutual insurance companies
16. 501(c)(16): Crop financing cooperatives
17. 501(c)(17): Supplemental unemployment benefit trusts
18. 501(c)(18): Employee-funded pension trusts
19. 501(c)(19): Veterans organizations
20. 501(c)(21): Black lung benefit trusts
21. 501(c)(22): Withdrawal liability payment funds
22. 501(c)(23): Pre-1880 veterans organizations
23. 501(c)(25): Title-holding corporations for pensions
24. 501(c)(26): State health risk pools
25. 501(c)(27): Workers’ compensation reinsurance organizations
26. 501(c)(28): Railroad retirement trusts
27. 501(c)(29): Qualified nonprofit health insurance issuers
28. 501(d): Religious and apostolic associations
29. 501(e): Cooperative hospital service organizations
30. 501(f): Cooperative service organizations of operating educational organizations
31. 501(k): Child care organizations
32. 521(a): Farmers’ cooperative associations

From credit unions to social advocacy groups, nonprofits take many forms. The IRS classifies these tax-exempt organizations under section 501(c), with each type serving a specific mission and operating under different rules.

While most nonprofit organizations are exempt from federal income tax, only some can offer tax deductions to donors. Many classifications are highly specific—sometimes used by larger nonprofits to create subsidiaries or limit liability. If tax breaks are your main motivator, a nonprofit isn’t the right path for you. These entities require genuine oversight and your commitment to a mission-driven purpose.

Here are 34 types of nonprofits you’ll encounter as you start or grow your nonprofit.

501(c)(3): Charitable organizations

• Best suited for: Public charities, religious groups, schools, and foundations
• Examples: American Red Cross, Habitat for Humanity, local food banks
• Funding: Tax-deductible donations, grants, endowments

Most nonprofits fall under 501(c)(3)—public charities, religious organizations, educational institutions, and scientific research groups. This category includes disease research institutions, private foundations, churches and synagogues, and traditional charitable organizations supporting education or disaster relief. Donations to these nonprofits are tax deductible, making them attractive to donors.

As of 2023, there were 1.48 million 501(c)(3) organizations, including religious ministries, charities, and other nonprofits. In 2022, the nonprofit sector comprised 5.6% of US GDP and employed approximately 12.8 million people.

Understanding 509(a) public charity subcategories

The IRS further classifies 501(c)(3) public charities into five subcategories under Section 509(a), each with specific funding and operational requirements:

• 509(a)(1): Traditional public charities receiving broad public support through donations, including churches, schools, hospitals, and medical research organizations
• 509(a)(2): Organizations (like a nonprofit museum) receiving more than one-third of support from public contributions, including admissions, merchandise sales, or services related to their exempt purposes
• 509(a)(3): Supporting organizations that operate exclusively for the benefit of other public charities
• 509(a)(4): Organizations testing for public safety
• Private foundations: Organizations not meeting public support tests, typically funded by a single source

Public charities vs. private foundations

Within 501(c)(3), organizations split into public charities or private foundations. Both can receive tax-deductible donations, but they operate differently and face different oversight levels.

Religious organizations

• Churches, synagogues, mosques, and other houses of worship
• Religious schools and missionary organizations
• Special tax exemption from filing Form 1023 application in many cases
• Protected religious autonomy under First Amendment considerations

Educational institutions

• Schools, colleges, and universities
• Museums and libraries
• Educational research organizations
• Must present objective, full view of relevant facts for public benefit

Scientific organizations

• Medical research institutions
• Environmental research groups
• Technology development for public benefit
• Must conduct research in the public interest, not for private commercial advantage

Advantages and disadvantages of 501(c)(3) status

Understanding the benefits and limitations helps you decide if 501(c)(3) status aligns with your mission:

Religious organizations

• Churches, synagogues, mosques, and other houses of worship
• Religious schools and missionary organizations
• Special tax exemption from filing Form 1023 application in many cases
• Protected religious autonomy under First Amendment considerations

Educational institutions

• Schools, colleges, and universities
• Museums and libraries
• Educational research organizations
• Must present objective, full view of relevant facts for public benefit

Scientific organizations

• Medical research institutions
• Environmental research groups
• Technology development for public benefit
• Must conduct research in the public interest, not for private commercial advantage

Advantages and disadvantages of 501(c)(3) status

Understanding the benefits and limitations helps you decide if 501(c)(3) status aligns with your mission:

501(c)(1): Congressional chartered organizations

These nonprofits are organized by an act of Congress, such as federal credit unions. Since federal lawmakers establish these organizations, there’s no application process and they don’t file tax returns.

501(c)(2): Title-holding corporations

501(c)(2) organizations hold property (usually real estate or intellectual property) for other tax-exempt organizations. A 501(c)(2) can exist only as a subsidiary of another nonprofit corporation, shielding property-owning organizations from certain legal liabilities. Many private foundations use this structure.

501(c)(4): Civic leagues and social welfare organizations

• Best suited for: Advocacy groups and nonprofits focused on community welfare or public policy
• Examples: American Association of Retired Persons (AARP), Sierra Club
• Funding: Donations (not tax-deductible), membership dues

Since these types of nonprofits have more freedom with political activity, they can lobby and fundraise for candidates. For example, the NRA and ACLU are 501(c)(4) organizations that actively engage in political advocacy. By contrast, 501(c)(3) organizations face strict prohibitions on direct political participation, including endorsing candidates or donating to campaigns. Donations to 501(c)(4) organizations are not tax-deductible.

501(c)(5): Labor and agricultural organizations

• Best suited for: Labor unions and farming cooperatives
• Examples: National Education Association, American Postal Workers Union
• Funding: Member dues, limited business income

These nonprofits work to improve working conditions and promote efficiency in farming, agriculture, and labor. They can engage in political activity and maintain tax-exempt status. Like labor unions, 501(c)(5) organizations rely on membership dues and donations, which are only potentially deductible as a business expense.

501(c)(6): Trade and professional associations

• Best suited for: Industry groups and professional organizations
• Examples: US Chamber of Commerce, American Bar Association
• Funding: Membership dues, conference fees, sponsorships

This category includes business leagues (e.g., associations of insurance brokers, realtors, accountants), plus chambers of commerce and real estate boards. They exist to promote good business conditions and may engage in political activity. Revenue comes from membership dues and paid educational programs.

501(c)(7): Social and recreational clubs

• Best suited for: Member-based clubs for recreation or socializing
• Examples: Rotary Club chapters, university alumni clubs, social dance organizations
• Funding: Member fees, event income

These not-for-profit organizations exist for member enjoyment, not to advance charitable causes or public benefit. Country clubs and amateur sports leagues fall into this category. They qualify as tax-exempt organizations but can only receive up to 35% of income from nonmember sources to maintain this status.

501(c)(8): Fraternal societies

A 501(c)(8) is a not-for-profit lodge society that meets regularly at a designated location and provides benefits like life, sickness, or accident coverage to members. This includes service clubs, lineage clubs, and secret societies. The Knights of Columbus ranks among the largest 501(c)(8) organizations in the US. Donations to these organizations are not tax-deductible.

501(c)(9): Employee beneficiary associations

Voluntary employee benefits associations (VEBAs) provide payment to members and dependents when they can’t work due to illness, injury, or other unforeseen events. Members must share a common bond, like working for the same employer or belonging to the same labor union. Typically, both employers and employees fund these organizations.

501(c)(10): Domestic fraternal societies

Unlike 501(c)(8) and (9) organizations, these groups don’t provide payment to members. Instead, they support charitable or social causes chosen by their members. Certain Freemason lodges and other fraternal orders that focus on community giving rather than member insurance or financial benefits operate under this classification.

501(c)(11): Teachers’ retirement fund associations

These organizations collect income through dues from public school teachers, tax revenues, and investment income. The funds pay pensions to retired public school teachers.

501(c)(12): Mutual or cooperative organizations

These can be mutual organizations that provide life insurance coverage to members at cost, mutual cooperative electric companies, and similar organizations. They must be organized as mutual associations without capital stock, and at least 85% of income must come from members’ premiums and investment income.

501(c)(13): Cemetery companies

Cemetery companies organized for the exclusive purpose of owning and operating cemeteries for their members qualify for tax exemption. They cannot operate for profit, and no part of net earnings can benefit any private shareholder or individual.

501(c)(14): State-chartered credit unions and mutual reserve funds

These organizations provide financial services, often at reduced rates, to members and the broader community. They generate income through standard lending practices and government grants.

501(c)(15): Mutual insurance companies

These nonprofits provide affordable insurance plans to local members, typically covering property damage, burials, and funerals. They must receive at least 85% of income from member premiums.

501(c)(16): Crop financing cooperatives

Under 501(c)(16), farmers pool resources for agricultural operations—buying equipment, cultivating crops, caring for livestock, or handling shipping and marketing operations.

501(c)(17): Supplemental unemployment benefit trusts

This nonprofit type provides financial support to members—employees of the same employer—during permanent or temporary unemployment. Payments supplement state unemployment benefits.

501(c)(18): Employee-funded pension trusts

Created before June 25, 1959, these pension trusts are funded entirely by employee contributions and pay member retirement benefits.

501(c)(19): Veterans organizations

Veterans organizations qualify for tax exemption when at least 75% of members are past or present members of the US Armed Forces. Examples include the American Legion and Veterans of Foreign Wars (VFW). These organizations can engage in lobbying and limited political activities while maintaining tax-exempt status.

501(c)(20): Black lung benefit trusts

These trusts provide benefits to individuals affected by black lung disease (pneumoconiosis) from coal mining. Funded by coal mine operators, they pay disability benefits and medical expenses for affected miners and their dependents.

501(c)(21): Withdrawal liability payment funds

These funds help employees meet financial obligations when withdrawing from multiemployer pension plans. Employers fund these organizations.

501(c)(22): Pre-1880 veterans organizations

This designation applies only to veterans organizations established before 1880 that provide insurance and benefits to members. Like 501(c)(19) organizations, at least 75% of members must be armed services members, past or currently active. Donations and grants provide funding.

501(c)(23): Title-holding corporations for pensions

These corporations hold title to real property for qualified pension, profit-sharing, or stock bonus plans. They must be organized for the exclusive purpose of acquiring and holding title to property, collecting income, and turning over the entire amount to the parent organization.

501(c)(24): State health risk pools

These organizations cover patients with preexisting medical conditions who may not qualify for traditional health insurance. Donations and grants provide funding.

501(c)(25): Workers’ compensation reinsurance organizations

These nonprofits provide workers’ compensation reinsurance to member organizations. Grants and membership dues fund their operations.

501(c)(26): Railroad retirement trusts

These trusts, established by the Railroad Retirement Board, provide retirement and disability benefits to railroad workers. They operate under specific federal legislation governing railroad employee benefits.

501(c)(27): Qualified nonprofit health insurance issuers

Created under the Affordable Care Act, these organizations provide health insurance in the individual and small group markets. They must meet specific requirements regarding reserves, governance, and profit distribution.

501(d): Religious and apostolic associations

These religious communal organizations have members who live together and share a common treasury. Members must engage in businesses for the common benefit, and net earnings get divided among members at year-end. Examples include certain Hutterite and Amish communities.

501(e): Cooperative hospital service organizations

These organizations provide shared services—like laundry, data processing, or purchasing—to two or more tax-exempt hospitals. They reduce costs through economies of scale while maintaining quality health care services.

501(f): Cooperative service organizations of operating educational organizations

Similar to 501(e) organizations, these cooperatives provide services to educational institutions. They might offer shared library services, IT support, or administrative functions to multiple schools or universities.

501(k): Child care organizations

These organizations provide child care services primarily for employees’ children. To qualify, substantially all care must be for employees’ dependents, and services must be available to all employees on a non-discriminatory basis.

521(a): Farmers’ cooperative associations

Farmers’ cooperatives market products, purchase supplies, and provide services for members engaged in farming. While technically under Section 521(a) rather than 501(c), they receive similar tax benefits when meeting specific operational requirements.

Tax implications for different nonprofit types

Understanding tax implications helps both organizations and supporters make informed decisions about structure and donations.

Tax exemption vs. tax-deductible donations

Here’s a crucial distinction that confuses many people:

• Tax exemption applies to the organization itself—it doesn’t pay federal income tax on related activities. Most 501(c) organizations receive some form of tax exemption.
• Tax-deductible donations benefit donors by reducing their taxable income. Only donations to certain nonprofit types—primarily 501(c)(3) organizations—qualify for tax deductions.

This distinction creates real-world implications:

• 501(c)(3) organizations. Both tax-exempt and able to receive tax-deductible donations
• 501(c)(4), (6), and most others. Tax-exempt but unable to offer tax deductions to donors
• Non-501(c)(3) organizations. Donors cannot claim tax deductions for their contributions

IRS compliance requirements and restrictions

Each nonprofit type faces specific compliance requirements that affect daily operations:

• Political activity limits. 501(c)(3) organizations cannot engage in political campaigning and face strict lobbying restrictions. Substantial lobbying can result in loss of tax-exempt status.
• Private benefit restrictions. No part of net earnings can benefit private shareholders or individuals, with excess benefit transactions triggering penalty taxes.
• Donor disclosure rules. While 501(c)(3) organizations keep donor information confidential, 501(c)(4) organizations may face disclosure requirements for certain political activities.
• Public support tests. Public charities must meet specific public support thresholds, typically receiving at least one-third of support from public sources.
• Operational tests. Organizations must operate primarily for exempt purposes, with incidental non-exempt activities not exceeding specific thresholds.

Annual filing requirements by organization type

Different nonprofit classifications must meet specific filing requirements to maintain tax-exempt status:

• Form 990 series. Most tax-exempt organizations file an annual information return.
• Form 990. For organizations with gross receipts ≥ $200,000 or assets ≥ $500,000
• Form 990-EZ. For organizations with gross receipts < $200,000 and assets < $500,000
• Form 990-N (e-Postcard). For organizations with gross receipts ≤ $50,000
• Filing exceptions. Churches and certain church-affiliated organizations are exempt from filing.
• Public disclosure requirements. Most nonprofits must make their returns available for public inspection.
• State filing requirements. Most states require separate annual filings and registration for charitable solicitation.

Tax-exempt organizations may request a six-month extension to file Form 990 by submitting IRS Form 8868. Remember: this extension doesn’t delay any taxes owed. According to the 2025 State of the Nonprofit Sector Survey, 36% of nonprofits ended 2024 with operating deficits—the highest in 10 years—making accurate financial reporting more critical than ever.

Unrelated business income tax (UBIT) explained

Even tax-exempt organizations must pay taxes on unrelated business income—revenue from activities not substantially related to their exempt purpose. This ensures nonprofits don’t unfairly compete with for-profit businesses.

According to the IRS, UBIT applies when all three of these conditions exist:

• The activity constitutes a trade or business.
• The activity is regularly carried on (not just occasional fundraisers).
• The activity is not substantially related to the organization’s exempt purpose.

Common UBIT triggers include advertising income, rental income from debt-financed property, and sales of products unrelated to the mission. Organizations must file Form 990-T when gross unrelated business income exceeds $1,000, with corporate tax rates applying to net income.

Exceptions exist for volunteer-run activities, donated merchandise sales, and convenience activities for members. Understanding UBIT rules helps nonprofits maximize revenue while maintaining compliance, which is especially important when selling products online to support your mission.

Next steps for starting your nonprofit organization

Starting a nonprofit can help ensure that your mission has a lasting impact. But with more than 30 types of tax-exempt status recognized by the IRS, choosing the right structure is critical.

Take these next steps to establish your nonprofit organization: 

1. Draft a comprehensive nonprofit business plan that outlines your mission, target beneficiaries, and funding strategy. Building a strong corporate social responsibility framework from day one also helps attract both donors and corporate partners.
2. File your articles of organization at the state level before applying for federal tax-exempt status.
3. Explore small business grants specifically designated for nonprofits. Many foundations and government programs offer startup funding for organizations addressing social issues. When seeking funding, you’ll need to learn how to write compelling grant proposals that clearly communicate your impact and sustainability plan.
4. Consult an experienced nonprofit lawyer or accounting professional for guidance. This investment helps you select the right type of nonprofit corporation for your mission and avoid forfeiting crucial tax-exempt status. Understanding business risk management principles also protects your organization from compliance violations that could jeopardize your tax-exempt status.
5. Consider diversifying your revenue streams. With 85% of nonprofits expecting increased service demand in 2025 and 52% operating with three months’ or less cash on hand, diversified revenue streams are essential. Planning to fund your mission by selling products or services online? Shopify offers tools to help nonprofits like yours launch ecommerce storefronts, raise funds, and grow your impact online.