Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business.Jan 21, 2022
Although a 501(c)(3) can donate to a 501(c)(4), it must exercise caution because unrestricted donations to a 501(c)(4) can result in loss of tax-exempt status.
DAFs sponsored by National Philanthropic Trust cannot make grants to political parties or candidates, or to 501(c)(4) organizations or be used for any personal benefit.
Unlike 501(c)(3) charities, 501(c)(4) organizations cannot offer their donors the ability to make tax-deductible donations, and they generally do not receive foundation grants.
501(c)(3) organizations are prohibited from engaging in any political campaign intervention activities. 501(c)(4) organizations may engage in political campaign intervention activities so long as such activities do not represent their primary activity.Apr 26, 2017
Is it possible for a 501(c)(3) organization to change into a 501(c)(4) organization? The short answer is no (Revenue Procedure 2017-5). But it may be possible for a 501(c)(3) organization to cause the creation of a 501(c)(4) organization and subsequently dissolve, leaving only the 501(c)(4) organization.Jul 21, 2018
Thus, an organization exempt under IRC 501(c)(4) may engage in political campaign activities if those activities are not the organization's primary activity.
Direct donation of publicly traded securities (or other illiquid gifts) is one of the most common ways to fund a DAF. This is a particularly tax-efficient method because securities that have been held for more than one year can be donated at their fair market value, and are not subject to capital gains tax.
To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare.
Yes. Organizations described in IRC 501(c)(4), (c)(5), and (c)(6) may engage in an unlimited amount of lobbying, provided that the lobbying is related to the organization's exempt purpose. This principle is enunciated in Rev. Rul.
Private foundations may make grants to 501(c)(4) organizations (or other non-public charities) as long as the grant is for charitable purposes. Charitable purposes include any permissible 501(c)(3) public charity activity except lobbying and voter registration.
AARP is considered a social welfare organization under the Internal Revenue Code (IRC) 501(c)(4).Mar 3, 2011