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Section 501(c)(3)

A part of the U.S. tax code that grants tax-exempt status to certain non-profit organizations, like charities, religious groups, and educational institutions, meaning they don't pay federal income tax. Donations to these groups are usually tax-deductible for the donor.

Tax-exempt status

A legal recognition that an organization does not have to pay certain taxes, such as federal income tax, because of its charitable, educational, religious, or other non-profit purpose.

Internal Revenue Code of 1986

The main body of federal tax laws in the United States, which outlines how taxes are collected, what income is taxed, and what deductions and exemptions are allowed.

Taxable year

The annual accounting period for which income tax is calculated. For most individuals, it's the calendar year (January 1 to December 31), but for organizations, it can be a different fiscal year.

Enactment date

The date on which a bill officially becomes a law, usually after it has passed both chambers of Congress and been signed by the President.