Based on information from the Internal Revenue Service (IRS) here an organization receives exemption from federal taxation when they apply and are granted 501c3 status.
Organization need to be organized and must operate exclusively for exempt purposes as stated in Section 501(c)(3) and may not use any earnings for shareholder or individual benefit.
Organizations that apply for 501(c)(3) status are primarily nonprofit corporations but can include corporations, trusts, LLCs as well as unincorporated associations.
Additionally, the organization must have one or more of the following purposes as required by the IRS:
Aside from exemption from federal taxation, nonprofit organizations will enjoy the following benefits by obtaining 501(c)(3) status, this list is not exclusive and may include many more items not listed below: