Tuesday, November 21, 2017

What is a 501(c)(4) Organization?

    A 501(c)(4) organization is an organization that is exempted from federal income taxation. These organizations can be civic leagues or organizations not organized for profit, but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a municipality and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes. An organization that is operated exclusively for the promotion of social welfare if it primarily engaged in promoting the common good and general welfare of the community. If the organization primarily benefits a private group of citizens it cannot qualify as a 501(c)(4) organization. Donations to these organizations are not tax deductible. To learn more about these organizations, click here: https://www.irs.gov/pub/irs-tege/eotopici03.pdf

 

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http://lawprofessors.typepad.com/nonprofit/2017/11/what-is-a-501c4-organization.html

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