A qualified charitable organization is a nonprofit organization that is recognized as tax exempt and eligible for donations under the U.S. Internal Revenue Code Section 501(c)(3). These organizations are dedicated to philanthropic, civic or charitable purposes and generally don’t operate for the benefit of private interests.

In order to qualify under 501(c)(3), an organization must meet certain criteria, such as having a dedicated non-profit purpose, being organized and operated for exclusively charitable purposes and not engaging in any lobbying activities. It is also necessary for the organization to provide services without discrimination and not buy partake in any political activities.

Donations to these charities are typically tax-deductible for donors and these organizations can save money on a variety of taxes, such as corporate income, property and employment taxes, as well. Qualified charities also have other advantages, such as eligibility for government grants and access to public resources and venues.

The requirements to obtain 501(c)(3) status can vary from state to state and tax law can be quite complicated. Applying for 501(c)(3) status is a lengthy process, but organizations usually start by filing Form 1023 with the IRS, which is an application for Recognition of Exemption. After the 501(c)(3) application is approved, annual returns must be filed with the IRS as well.

Before donating to a charity, donors should always take the time to research the organization to make sure they are a qualified organization. Confirm whether the organization is a recognized 501(c)(3) charity and make sure the organization is in good standing. Donors can also check with sites such as Charity Navigator that research and rate charitable organizations for a better understanding of the organization's financial health, programs, and transparency.

In conclusion, qualified charitable organizations are nonprofit organizations recognized as tax-exempt under the U.S. IRS 501(c)(3) classification. They must meet certain requirements and donors should take steps to ensure the organization is legitimate. Donations to these organizations are tax deductible and help them meet their charitable goals.