What is a 501 c 4 organization?

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. For information about applying for exemption, see Application for Recognition of Exemption.

What is the difference between a 501c3 and a 501 c 4?

What does that mean? Under Internal Revenue Service rules, a 501(c)3 is a non-profit for religious, charitable or educational purposes. Donations to 501(c)3 groups are tax-deductible. A 501(c)4 is a social welfare group and can engage in more advocacy and lobbying.

Are there any 501 c 4 political groups?

By the time of the ruling, many major political players, including Karl Rove, had formed 501 (c)4 organizations, and 501 (c)4 groups were beginning to take over a role that 527’s (such as 2004’s Swift Vets and POWs for Truth) had played in previous elections.

Who is the chair of a nonprofit board?

When a nonprofit organization is new, it is fairly common for the founding executive director to serve as interim chair of the board. Most of the time, this is a short-lived transition, and the board seeks to find an outside president since the board is responsible for reviewing the executive director’s performance and pay.

Can a 501 ( c ) 4 be a 527?

And research into Tea Party communities shows that the accepted wisdom was that new Tea Party chapters should immediately file as 501 (c)4 organizations. Ironically, of the three organization tax designations in question—501 (c)3, 501 (c)4, and 527— only 501 (c)4 allows for a group to self-declare their status without first filing with the IRS.

Can a board of directors of a 501 ( c ) 3?

Many 501 (c) (3) board of directors rules state that family members are excluded from voting roles on the board of directors. The executive director’s family could be biased when it comes to voting on her salary or performance. When included as voting members, they are likely to be excluded from voting on issues that present a conflict of interest.