The PGN Scholars Foundation
What is the difference between a 501(c)(3) and 501(c)(7)?
Understanding the difference between a 501(c)(3) and a 501(c)(7) can be confusing. PGN's National Organization is made up of both a 501(c)(3) and a501(c)(7), while its Chapter Organization(s) are designated as501(c)(7)s.
A 501(c)(3) Organization can provide a tax benefit, or write-off, to any donors who wish to help fund the efforts of that organization.
The National Council & Council Operations fall under The National Fraternity of Phi Gamma Nu as depicted in the image below, under the501(c)(7).
The Philanthropic and Professional Development of members is funded nationally by The Phi Gamma Nu Scholars Foundation, under the 501(c)(3). Only donations made to the 501(c)(3) can be tax receipted. You can donate to The Scholars Foundation via the online portal or by making a check out to the organization. (More information on this in the Corporate Fundraisers section.)
The Internal Revenue Service (IRS) describes a 501(c)3 organization as the following:
A Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
The general nature of activities for a 501(c)(3) are the following:
Activities of nature implied by description of class of organization
Annual return required to be filed with the IRS:
990 or 990-EZ (Note: These forms would be completed at the National level)
Can provide a tax write-off to donors
The Internal Revenue Service (IRS) describes a 501(c)(7) organization as the following:
A Social and Recreational Club
The general nature of activities for a 501(c)(7) are the following:
Pleasure, recreation, social activities
Annual return required to be filed with the IRS:
990 or 990-EZ (note: These forms would be completed at the National AND the Chapter level)
Cannot provide a tax write-off to donors