Update: The Phan Foundation received 501(c)(3) status in 4Q2021!
The Phan Foundation submits application for 501(c)(3) status
Last week, the foundation submitted their application to become a tax-exempt, private operating foundation.
What is a 501(c)(3) status
Section 501(c)(3) of the U.S Internal Revenue Code (IRC) describes federal tax exemption of nonprofit organizations. These organizations can be considered public charities, private foundations, or private operating foundations. The US Department of Treasury regulates and administers this section of the IRC through the Internal Revenue Service (IRS). A unique provision to Section 501(c)(3) that differs from other tax exempt entities is the ability for donations to be tax deductible.
Benefits to having 501(c)(3)
The benefit of having 501(c)(3) status is tax exemption from federal and/or state income taxes. This is important because it enables The Phan Foundation to put all of it's resources towards it's charitable purpose of helping open doors of opportunity.