501(c)(4) Status Overview
501(c)(4) status refers to social welfare organizations exempt from federal income taxes. You can apply for 501(c)(4) status if your nonprofit promotes social welfare. Contributions to 501(c)(4)s aren’t tax deductible.
Specifics of 501(c)(4) Organizations
HOAs often qualify as 501(c)(4) tax-exempt. Their public benefit activities usually maintain community spaces. 501(c)(4) organizations can engage more in advocacy and lobbying than 501(c)(3) charities.
Comparison: 501(c)(3) vs. 501(c)(4)
501(c)(3) nonprofits are for religious, charitable, scientific, educational purposes. 501(c)(4)s are social welfare groups. Donations to them are not tax-deductible. 501(c)(4) members may volunteer for 501(c)(3)s.
Differences in Tax Treatment
501(c)(4) definition includes organizations operated exclusively to promote social welfare. 501(c)(4)s are civic leagues, social welfare groups, local associations. They must file for tax exemption. Obtaining 501(c)(3) status doesn’t affect state nonprofit status. 501(c)(4)s can receive unlimited contributions from individuals, corporations, unions.