Question

Which of the following is identified as a 501(c)(3)?

(1 point)
Responses

a private school
a private school

a private foundation
a private foundation

a lobbying firm
a lobbying firm

a company that donates its profits but has unrelated business income

Answer 1

A 501(c)(3) organization is a tax-exempt nonprofit organization that is organized for charitable, educational, religious, or scientific purposes. From the options provided, the one that best fits this definition is:

**a private foundation**

Private foundations are classified as 501(c)(3) organizations because they primarily grant funds to other charities or nonprofits, though they are also subject to specific regulations and requirements.

The other options, such as a private school (if it operates as a nonprofit), could also be 501(c)(3), but generally, private schools may often operate differently depending on their structure. The lobbying firm is not a 501(c)(3) because its primary purpose is not on charitable or educational activities. A company donating profits but having unrelated business income may not qualify as a 501(c)(3) due to the unrelated business income rules.

Therefore, the most straightforward answer would be:

**a private foundation**