What does Section 501C of The U.S. Internal Revenue Code mean? Read on to discover the definition & meaning of the term Section 501C of The U.S. Internal Revenue Code - to help you better understand the language used in insurance policies.
Section 501C of The U.S. Internal Revenue Code
The section of the Internal Revenue Code under which a significant number of nonprofit corporations/associations in the United States are organized. This section enumerates 28 different types of nonprofit organizations that are exempt from some types of federal income taxes. Many states have laws that specify the types of nonprofit organizations that are exempt from state taxes, as well. Organizations described in Section 501(c)(3) are commonly referred to as charitable organizations. They are eligible to receive tax-deductible contributions but must not be operated for the benefit of private interests. Nor may any part of a Section 501(c)(3) organization's net earnings benefit any private shareholder or individual.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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