501(c)(3) ORGANIZATION – An organization recognized by the Internal Revenue Service as a not-for-profit organization. A 501(c)(3) organization can borrow funds to finance projects on a tax-exempt basis through a conduit issuer. Examples include not-for-profit colleges and universities, hospitals, museums and retirement communities. See: CONDUIT BORROWER; PRIVATE ACTIVITY BOND – Qualified 501(c)(3) bonds.
