5013c vs. 501(c)(3): What It Means and Why It Matters for Your Nonprofit

If you’re trying to start a nonprofit, chances are you’ve come across terms like “5013c,” “501c,” “501 c 3,” and “501(c)(3)”—maybe even used them interchangeably. But while they might sound similar, only one of them is actually correct. Spoiler alert: it’s 501(c)(3).

So what do these terms mean, why does it matter which one you use, and how do you get your nonprofit on the right track? Let’s break it all down.

The term 501(c)(3) refers to a specific section of the U.S. Internal Revenue Code. It’s the legal designation that applies to nonprofits operating for purposes that are: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals. If your organization qualifies, it can receive tax-deductible donations and is typically exempt from federal income tax.

It’s kind of a big deal.

Here’s why 501(c)(3) status matters:

• Tax-deductible donations: Donors can write off contributions on their taxes.
• Access to grants: Most foundations and government programs require it.
• Credibility boost: The 501(c)(3) label builds trust with supporters, volunteers, and potential partners.

The 501(c) section of the Internal Revenue Code was added in 1954, but the federal government had been offering tax exemptions to charitable organizations as far back as the 1890s. The idea was simple: if an organization serves the public good, it should be able to use more of its resources to make a difference—not pay taxes like a for-profit business.

501(c)(3) became the most commonly known designation because of its alignment with causes that people widely support: education, public health, religion, the arts, and more.

It’s a common typo. And we get it—typing parentheses isn’t exactly second nature, and “5013c” rolls off the tongue a little easier.

But here’s the catch:
There’s no such thing as a 5013c nonprofit. It’s not a real tax code. Using it in grant applications, press releases, or donor materials could hurt your credibility—and confuse the IRS.

If you’ve accidentally used “5013c” in your materials, don’t panic. Just correct it moving forward and consider this your official terminology glow-up.

Believe it or not, 501(c) is a whole family of tax-exempt categories—501(c)(3) is just the most well-known. Others include:

• 501(c)(4): Social welfare organizations (not donation-deductible)
• 501(c)(6): Business leagues or chambers of commerce
• 501(c)(7): Social or recreational clubs (like a country club)

Each comes with its own rules, especially when it comes to political activity and how donations are treated. For example, only 501(c)(3) organizations can offer tax deductions to donors—which is why it’s the go-to choice for charities.

Before applying, make sure your organization meets the IRS’s basic requirements. Here’s a quick checklist:

✅ Operates for a recognized exempt purpose (charitable, religious, educational, scientific, literary, etc.)
✅ Is organized as a nonprofit corporation
✅ Has a board of directors (usually at least 3, unrelated individuals)
✅ Does not distribute profits to individuals or shareholders
✅ Avoids political campaigning and limits lobbying activity
✅ Includes specific IRS-required language in its organizing documents
✅ Agrees to dedicate assets to another 501(c)(3) upon dissolution

If you can check all those boxes, you’re likely on the right track.

Starting a nonprofit and securing 501(c)(3) status can feel overwhelming, but breaking it down into steps makes it manageable:

1. Define your mission and name: Make sure it clearly serves the public good.
2. Appoint a board of directors: You’ll need at least three unrelated members.
3. Draft your bylaws: Think of these as your nonprofit’s internal rulebook.
4. Incorporate with your state: File your articles of incorporation to become a legal entity.
5. Apply for 501(c)(3) status: File IRS Form 1023 or 1023-EZ, depending on your nonprofit’s size.
6. Stay compliant: Ongoing recordkeeping and annual filings are a must.

Don’t let these common mistakes derail your nonprofit dream:

• Using vague bylaws: The IRS needs to see structure and purpose.
• Poorly defined mission: It must align with charitable goals defined by the IRS.
• Incorrect paperwork: One missed signature can delay approval by months.

Using “501(c)(3)” instead of “5013c” isn’t just about being technically correct—it’s about professionalism and credibility.

✅ Correct: “We’re a 501(c)(3) nonprofit eligible for tax-deductible donations.”
❌ Incorrect: “We’re a 5013c nonprofit” (the IRS would like a word…)

Believe it or not, accuracy isn’t just for your donors and board—it also helps your search engine rankings. Google prioritizes well-written, accurate content. If your website uses “5013c” instead of “501(c)(3),” you might be hurting your ability to show up in search results.

A simple terminology update on your site, donation pages, and blog posts can improve your discoverability—and your professional image.

We know starting a nonprofit isn’t easy. Between legal requirements, IRS forms, and trying to make real change in the world, it’s a lot to juggle.

That’s why our SureSTART program is designed to walk you through the process—step-by-step. We’ve helped over 25,000 nonprofits successfully launch, and we’re ready to help you, too.

Don’t let a typo or paperwork mistake slow you down. If you’re dreaming of starting a nonprofit that makes a difference, let’s make it official—the right way.