Types of 501(c)(4) Organizations
Social welfare organizations are classified as 501(c)(4) organizations. Their primary purpose is to provide social benefits to communities rather than charity. Examples are political and advocacy groups.
- Money donations to 501(c)(3)s are tax deductible for donors.
- 501(c)(4)s don’t have to disclose donor names.
- Both can sponsor debates and provide voter guides.
Comparison Between 501(c)(3) and 501(c)(4) Organizations
There are differences between 501(c)(3) and 501(c)(4) organizations. But both are nonprofits and usually don’t pay taxes.
- A 501(c)(4) can lobby to achieve its purpose.
- Income spent on politics is taxable.
501(c)(4) as a Type of Organization
Social welfare organizations are classified as 501(c)(4). Their primary purpose is to provide social benefits rather than charity. A 501(c)(4) can do incidental charity work. But contributions aren’t tax deductible.
- A 501(c)(5) provides services to its members.
- After Citizens United, corporations registered as 501(c)(4)s to spend on politics.