What defines a Qualified Charitable Organization?

A Qualified Charitable Organization is defined as a nonprofit corporation that has been certified by the US Treasury for the purpose of accepting qualified charitable contributions. This designation is important for taxpayers who wish to make charitable donations and claim tax deductions. The IRS provides guidelines for what qualifies an organization as charitable, and these entities must meet specific criteria to be recognized for tax deduction purposes.

In contrast, an association approved by the state (the first option) may not necessarily have the designation required by the IRS to receive tax-deductible contributions. Similarly, a company offering free services to the community (the third option) might not be recognized as charitable unless it meets the IRS standards for charitable organizations. Lastly, an entity that operates solely for profit (the fourth option) does not qualify, as it does not serve a charitable purpose and thus cannot accept tax-deductible contributions. Therefore, option B is the correct understanding of what establishes a Qualified Charitable Organization.