Credit Counseling Organizations - Applicability of Code Section 501(q)


Does Code section 501(q) apply to my organization?

Section 501(q) applies to you if a substantial purpose of your organization is either to educate the general public on budgeting, personal finance, financial literacy, saving and spending practices, or to conduct financial counseling -- and you want to be tax exempt under section 501(c)(3) or 501(c)(4).

Note: If you provide credit counseling that is only incidental to achieving other exempt purposes, you may not be subject to section 501(q). For example, if you are a school and offer a financial literacy course as part of your curriculum, section 501(q) does not apply to you.