What is the difference between a 501(c)(3) organization and a 501(c)(8) organization?

A 501(c)(3) organization, which qualifies as an eligible not-for-profit organization recipient for the Care Abounds in Communities® and Care in Regions® programs, is different from a 501(c)(8) organization (i.e., Thrivent Financial for Lutherans and its chapters, fraternal benefit societies). Two of the more pertinent differences are:

1. To qualify for tax exemption, a 501(c)(8) must operate under the lodge system or for the exclusive benefit of members that so operate under a lodge system. The regulations state that "operating under the lodge system" means "carrying on its activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called branches, chapters, or the like." A section 501(c)(3) organization does not have this "lodge system" requirement, but rather has other requirements that are unique to it (e.g., non-inurement, etc.).
   
   
2. Those who make charitable donations to 501(c)(3) organizations (individuals and corporations) can deduct those donations for tax purposes, subject to certain limits. In contrast, for a 501(c)(8) organization, INDIVIDUALS may deduct donations used exclusively for religious, charitable, scientific, literary or education purposes, or for the prevention of cruelty to children or animals. However, entities other than individuals (e.g., corporations) cannot deduct those donations for tax purposes.