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Topic: 501(c)(4)

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	Lobbying, 501(c)(4) Primer
		In order to establish the new 501(c)(4) you would need first to incorporate in your state as a separate nonprofit corporation and then apply for federal and local tax exemptions, just as your 501(c)(3) originally did.
		The governing board of the 501(c)(4) may be identical to, interlocking with, or completely independent from the 501(c)(3)'s board of directors.
		You would then need to weigh the costs and benefits of becoming a 501(c)(4), and whether you might successfully negotiate with the IRS to preserve the status of 501(c)(3) by establishing a separate 501(c)(4).
	www.hurwitassociates.com /l_lobby_primer.html (831 words)

	FAQ's - 501(c)(4) Status for Nonprofit Organizations
		A §501(c)(4) organization may participate in lawful political campaign activities involving the nomination or election of public officials without adversely affecting its exempt status, provided such activities are insubstantial in relation to its overall activities.
		Any §501(c)(4) organization must, when membership dues are assessed or paid, notify members of the portion of dues allocable to lobbying and political campaign activities.
		If a §501(c)(4) organization fails to give its members this notice, it will be taxed on the amount of dues allocable to lobbying and political campaign activities at the highest corporate tax rate.
	www.t-tlaw.com /lr-05.htm (1037 words)

	[No title]
		A 501(c)(4) organization is afforded tax exempt status but does not have the advantage of tax deductible contributions.
		A 501(c)(4) organization may therefore directly lobby, either by volunteer activity or by expenditures.
		However, a 501(c)(4) is still prohibited from directly opposing or supporting a political candidate for public office.
	www.lc.org /Resources/political_activity_non_profit_organizations_0900.html (1356 words)

	The U.S. tax code and non profits - SourceWatch
		Contributions to a 501(c)(3) organization can be claimed against income tax but donations to a 501(c)(4) entity cannot.
		From a fundraising point of view it is much harder to raise money for a 501(c)(4) group, because individual donors cannot deduct the contributions from their taxable income.
		Some argue that corporate donations to a 501(c)(4) organization do not need to be disclosed since there has been no tax concession granted and therefore no public right to know.
	www.sourcewatch.org /index.php?title=The_U.S._tax_code_and_non_profits (675 words)

	PGDC News Story - CRS Issues Report on Reporting Requirements for Exempt Orgs
		The report addresses the differences among 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), and section 527 organizations, along with the IRS reporting and public disclosure requirements for each.
		Most exempt organizations, including those described in IRC §§ 501(c)(3), 501(c)(4), 501(c)(5) and 501(c)(6), are generally exempt from tax on their income.
		The Internal Revenue Code allows 501(c)(4), 501(c)(5), and 501(c)(6) organizations to participate in political campaign activity so long as such activities are consistent with the organization's exempt purpose.
	www.pgdc.com /usa/item?itemID=278771 (7484 words)

	[No title]
		However, churches, 501(c)(3) and 501(c)(4) organizations are prohibited from endorsing or opposing candidates for political office.
		By concentrating on a narrow range of issues in the voter guide and widely distributing it among the electorate during an election campaign, Organization D is participating in a political campaign in contravention of the provisions of section 501(c)(3) and is disqualified as exempt under that section.
		The IRS has indicated there are several types of activities which are considered inappropriate for 501(c)(3) or 501(c)(4) organizations: (1) the endorsement of candidates, (2) making donations to a candidate’s campaign, and (3) engaging in fund raising on behalf of a candidate.
	www.lc.org /Resources/voter.htm (829 words)

	revrul66-59
		An organization of employees whose purpose is to pay lump sum retirement benefits to its eligible members or death benefit to their survivors does not qualify for exemption from Federal income tax under section 501(c)(4) of the Internal Revenue Code of 1954 as a local association of employees.
		The association was organized for the purpose of creating and maintaining a fund to provide benefits for hourly paid employee members on their retirement; or, in case of an employee member's death, to pay benefits to his surviving spouse, or a descending heir previously designated as beneficiary.
		Amounts disbursed by the organization as retirement and death benefits in fulfillment of its organizational purposes are not devoted to charitable, educational, or recreational purposes within the meaning of section 501(c)(4) of the Code.
	www.taxlinks.com /rulings/1966/revrul66-59.htm (456 words)

	CRS Report: RL30877 - Characteristics of and Reporting Requirements for Selected Tax-Exempt Organizations - NLE
		IRC § 501(c)(4) organizations are generally referred to as "civic leagues" or "social welfare organizations." These organizations often engage in activities similar to 501(c)(3) organization activities, but they often try to achieve their goals through influencing legislation, litigating, or inciting the public to political action.
		Dues to many trade associations [501(c)(6) organizations] and labor unions [501(c)(5)] and some charitable [501(c)(3)] or social welfare organizations [501(c)(4)] may be tax-deductible business expenses for some or all of their members.
		Trade associations and 501(c)(4) organizations whose members might be deducting their dues to the organization have to notify members if a portion of their dues deduction is not tax deductible because of the lobbying activities of the organization.
	www.ncseonline.org /nle/crsreports/risk/rsk-64.cfm?&CFID=6378514&CFTOKEN=40667222&CFID=6378514&CFTOKEN=40667222 (3415 words)

	revrul70-4
		The organization was formed for the stated purposes of promoting the health of the general public by encouraging all persons to improve their physical condition and of fostering by educational means public interest in a particular sport for amateurs.
		Section 1.501(c)-1(d)(3) of the regulations defines the term "educational" as including the instruction or training of the individual for the purpose of improving or developing his capabilities, or the instruction of the public on subjects useful to the individual and beneficial to the community.
		Section 501(c)(4) of the Code provides for the exemption from Federal income tax of civil leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare.
	www.taxlinks.com /rulings/1970/revrul70-4.htm (580 words)

	Give.org
		Organizations that both perform a substantial amount of legislative lobbying on behalf of specific issues and primarily engage in social welfare activities may be classified under section 501(c)(4).
		Contributions to 501(c)(4) organizations generally are not deductible as charitable donations, but they may be deductible as a business expense.
		As long as 501(c)(4), 501(c)(6), or 501(c)(19) organizations are primarily involved with tax-exempt activities, they can engage in a substantial amount of lobbying.
	www.give.org /tips/tax.asp (1799 words)

	TAP: Vol 10, Iss. 44. The Big Chill. Karen Paget. (Site not responding. Last check: 2007-10-12)
		Nonprofits that are tax exempt under Section 501(c)(3) of the revenue code (which allows private donors to take tax deductions for the gift and allows foundations to make grants) are nonetheless permitted to organize, to speak out on issues, even to lobby, as long as lobbying doesn't consume a significant share of their activity.
		However, many organizations do not opt for a 501(c)(4) because it requires committed members and donors to write checks that are not tax deductible.
		The Christian Coalition, by contrast, has had its application for 501(c)(4) status delayed, and has been the object of litigation based on an alleged pattern of coordinated support for Republican candidates, though the suit is based on Federal Election Commission rules, and not IRS standards.
	www.prospect.org /print/V10/44/paget-k.html (4363 words)

	The Council on Foundations - Article (Site not responding. Last check: 2007-10-12)
		To preserve deductibility, it is important that any contributions to such an affiliated group be made to the entity that is exempt under Section 501(c)(3) and that it not be earmarked for a noncharitable activity to be performed by the 501(c)(4), such as participating in an election.
		Charitable organizations such as private and community foundations may legally make a grant to a 501(c)(4) or any other noncharitable organization as long as it is for an activity that furthers a charitable purpose.
		For example, a community foundation with a field of interest fund dedicated to enhancing environmental quality could make a grant to an environmental organization that is exempt under Section 501(c)(4) to conduct a study of the water quality of local streams and publish the results.
	www.cof.org /Content/FAQ/DisplayCollection.cfm?blockID=117&menuContainerID=50& (816 words)

	Primer on Federal Tax Rules Pertaining to Lobbying
		When you place a full-page advertisement in a newspaper advocating the defeat of HR 2345 and urge subscribers to tell their Congressmen to vote against HR 2345, this is grassroots lobbying.
		Federal tax law varies, depending on whether the organization is a § 501(c)(3), 501(c)(4) or 501(c)(6) organization.
		Because contributions to a § 501(c)(3) organization may qualify for deduction as charitable contributions, the rules are stricter for this category of tax-exempt organization.
	www.exempttaxlaw.com /CM/Articles/articles15.asp (760 words)

	[No title]
		After exhausting its administrative remedies, appellee instituted this suit in the United States District Court for the District of Columbia under Section 7428 of the Code /4/ seeking a declaratory judgment that it qualifies as an organization described in Section 501(c)(3).
		If the Court concludes that the proper mode of review is by certiorari, this filing should be treated as a petition for a writ of certiorari under 28 U.S.C. /2/ "A" refers to the separately bound record appendix filed in the court of appeals.
		Unlike a Section 501(c)(3) organization, a social welfare organization is not eligible to receive tax-deductible contributions or exemption from federal unemployment or social security taxes.
	www.usdoj.gov /osg/briefs/1982/sg820197.txt (4766 words)

	Healthcare Financial Management: IRS toughens its guidelines on tax exemption for HMOs
		HMOs unable to obtain 501(c)(3) status often were recognized by the IRS as exempt under section 501(c)(4) before enactment of section 501(m).
		Although section 501(c)(4) also contains a community benefit standard, the IRS did not apply the test to HMOs as strictly as the 501(c)(3) standard.
		GCM 39829 does not fully consider the criteria for HMOs to be recognized under 501(c)(4), but it states that exemption standards under the section are similar to those outlined for 501(c)(3) organizations, only less exacting.
	www.findarticles.com /p/articles/mi_m3257/is_n1_v45/ai_9312444 (1188 words)

	Revenue Ruling (Site not responding. Last check: 2007-10-12)
		A nonprofit organization formed to promote world peace and disarmament by nonviolent direct action and whose primary activity is the sponsoring of antiwar protest demonstrations in which demonstrators are urged to commit violations of local ordinances and breaches of public order does not qualify for exemption under section 501(c)(3) or (4) of the Code.
		The purposes of the organization are to educate and inform the public on the principles of pacificism and nonviolent action including civil disobedience.
		Section 501(c)(4) of the Code describes civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare.
	www.cdfe.org /revenue_ruling.htm (760 words)

	PROHIBITION IN SEARCH OF A RATIONALE:WHAT THE TAX CODE PROHIBITS; WHY; TO WHAT END? - Notes
		Similar attribution issues are raised when a church proposes to create a related section 501(c)(4) organization to conduct prohibited political activity either directly or through a related PAC.
		In order to avoid “conduit” pitfalls, the church and any related section 501(c)(4) organization must maintain separate books and records, and must insure that no tax-deductible church contributions are used to support the political activities of the section 501(c)(4) organization or its PAC.
		A section 501(c)(4) organization may engage in political activity that is prohibited for a section 501(c)(3) organization, provided it is not its primary activity.
	www.bc.edu /bc_org/avp/law/lwsch/journals/bclawr/42_4/06_FTN.htm (4545 words)

	StealthPacs.org \| About this Project \| Tax and legal terms
		Those groups that attempt to influence elections are required to pay taxes on their election-oriented expenditures or their organization’s overall investment income for the year, whichever is less.
		Section 501(c)(4) groups must make their annual tax forms available to the public but are not required to disclose contributors’ names.
		Qualified non-profit corporations are permitted to accept unlimited contributions from individuals and spend that money for express advocacy communications, as well as for electioneering communications.
	www.stealthpacs.org /about/page.cfm?pageid=7 (1061 words)

	ACLJ \| American Center for Law & Justice
		The 501(c)(4) organization must be separately incorporated from the church.
		The 501(c)(4) organization is exempt from taxation, but contributions to such organizations, unlike contributions to 501(c)(3) organizations, are not deductible.
		Note that it is the PAC of the 501(c)(4) organization that may engage in political activities, not the 501(c)(4) organization.
	www.aclj.org /Issues/Resources/Document.aspx?ID=84 (4681 words)

	501(c)(4) Representation (Site not responding. Last check: 2007-10-12)
		Applicant organizations which are described in section 501(c)(4) of the Internal Revenue Code of 1986 and engage in lobbying activities after December 31, 1995 shall not be eligible for the receipt of Federal funds constituting an award, grant, or loan.
		As set forth in section 3 of the Lobbying Disclosure Act of 1995, as amended, (2 U.S.C. 1602), lobbying activities are defined broadly to include, among other things, contacts on behalf of an organization with specified employees of the Executive Branch and Congress with regard to Federal legislative, regulatory, and program administrative matters.
		The applicant represents that it is an organization described in section 501(c)(4) of the Internal Revenue Code of 1986 which, after December 31, 1995, has______ has not______ engaged in any lobbying activities as defined in the Lobbying Disclosure Act or 1995.
	www.er.doe.gov /production/grants/501c4.html (157 words)

	[No title]
		This also applies to §501(c)(4) orgs (1) racial discrimination is clear, but other kinds, such as sexual preference, aren’t - Gender discrimination is most likely allowed.
		Any amounts that the §501(c)(3) provides to the §501(c)(4) in grants, etc., that are used in lobbying are attributed to the (c)(3).
		The (c)(3) can control the affiliate (e.g., maintain right to appoint its board) as long as the (c)(4) is a separate legal entity whose activities are not supported by tax-deductible contributions.
	www.law.nyu.edu /studentorgs/sba/outlines/upperlevel/taxexemptorgs/manny_s00.doc (11325 words)

	I'm a Non-profit: I'm SAFE!
		An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community and, therefore, does not qualify as a section 501(c)(4) organization.
		I can't see how a mortgage broker could qualify as a 501(c)(4) tax-exempt social welfare organization unless it specifically restricted its activities to the members of a specific general population.
		The telemarketers and spammers who have contacted me about rectifying my credit situation have indicated that my refinancing rate would be low, but none has indicated how refinancing via them would benefit me as the member of any community.
	www.suite101.com /article.cfm/upwards_mobility/105409 (468 words)

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