Adjust your W-4 for a bigger refund or paycheck. Certain organizations formed with the public good as their paramount mission can apply for tax-exempt status. Finding good outside advisers is possible for institutions without deep pockets, he said, but it is very difficult. Shuman also favors index funds for nonprofits, but warns that the success of index funds over the past several years has largely been driven by companies like Facebook, Amazon, Netflix and Google. Purpose of c 3 organizations Congress has long recognized the importance of charitable and philanthropic organizations.