May I practice as a psychologist and get 501(c)(3) status through a non-profit company I own?

Full question:

I am a practicing psychologist for a public school district with a EdS M.A. plus 30. I am wondering if I would be able to offer the same services I do now under a recently formed non-profit 501 C3 that I just received from the IRS????thank-you!hrelandt@sbcglobal.net248.652.0832

• Category: Taxes
• Date: 04/07/2025
• State: Michigan

Answer:

A 501(c)(3) organization is also known as a not for profit organization. Such an organization is formed to serve a public charitable purpose.

To be recognized as a public charity, your nonprofit must be organized and operated for purposes that are beneficial to the public interest. These purposes include:

relief of the poor, distressed, or underprivileged
advancement of religion
advancement of education and science
creation or maintenance of public buildings or monuments
lessening the burden of government
elimination of prejudice and discrimination
defense of human and civil rights
combating community deterioration and juvenile delinquency

The organization must not operate for the benefit of a private person. Therefore, any revenue generated for services provided cannot be distributed as income or dividends to the shareholders and/or officers of the corporation.

Upon dissolution of the non-profit company, its assets must be distributed to another 501(c)(3) charity. It is not allowed to engage in any partisan political activity. Lobbying is accepted but cannot be a substantial part of its activities. Public charities are the only tax-exempt organizations that can receive tax-deductible donations.