501(c)

Finance a la shmoop... what is a 501c3.... well it's a charity people and it [Man discussing 501c3 charity]

sounds way cooler if you call it a number and with a letter than a number

right 501cPO...remember 007 yeah, way cooler than just

James right all right well 501c3 is the United States legal code number that

created space for federally tax-exempt charities that's a C there; C for

charity and there are 29 flavors of charitable category that they addressed [Ice cream flavors]

now the government's working hard to catch up to baskin-robbins numbers but

they're not there yet specifically some of those 29 flavors [Girl given an ice cream cone]

include religious organizations, scientific literary or educational

charities, charities for amateur sports, testing for public safety kind of

charities yeah like the crash dummies charities involving cruelty to children [Woman on a swing with a child]

women and animals and yeah most of these are anti so why the special treatment

well if a 501c3 follows the many strict rules to maintain its nonprofit status

then donors giving money to it get to deduct that money right off the top when [Donor gives money to charity]

they're doing their taxes like if a tax payers paying 40 percent marginal tax

and they donate a dollar well that dollar only costs um 60 cents to donate

the US government essentially underwrites charitable donations at

least to a point like they forgive 40 cents of tax in that dollar and that's a

good thing we need noblesse oblige charities in the world they do good work

well most of them do.. [People standing behind charity stalls]