Can a 501c3 make donations to an individual?

Grants to individuals are considered charitable and in line with 501c3 status as long as the organization can demonstrate that the recipient of funds is in line with the charity's exempt purpose. Organizations must demonstrate that the recipient of funds is part of a charitable class and keep such documentation.

Can you ask for donations if you are not a charity?

Yes, you can receive a donation without be a nonprofit. In the United States and many other nations, there are tax benefits to the donor when donating toward a certified nonprofit. Regardless of your nonprofit status, someone can give you a donation. The benefit to the donor is lost if you are not a nonprofit.

Do you have to have a 501c3 to fundraise?

Nonprofit organizations are formed under the laws of a state. The organization can legally accept donations without tax-exempt status or a sponsor but will likely find few willing to donate without the accompanying tax deduction.