Section 501(c)(4) organizations are organized as not for profit organizations for purposes generally related to social welfare.
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Section 501(c)(4) social welfare organizations are required to be operated exclusively for the promotion of social welfare.
It won exemption in 1986 under section 501(c)(4) of the code, covering civic and social welfare groups.
These groups claim tax-exempt status under section 501 (c) (4) of the federal tax code, which is for social welfare groups.
However, there was a difference of opinion as to the result under Section 501(c)(3) when applying the law to these facts.
Section 501(c)(4)(B) explicitly prohibits monetary benefits to any private shareholder or individual.
Beneficiaries of a section 501(c)(3) organization would have to be members of a charitable class, which is generally interpreted as poor or distressed.
The Law Center is supported by contributions from individuals, corporations and foundations, and is recognized by the IRS as a section 501(c)(3) organization.
Groups granted tax-exempt status under section 501(c)(4) of the tax code are allowed to engage in some political activity, but their primary focus is supposed to be promoting social welfare.
That site is completely unrelated to The Henrietta Lacks Foundation, Inc. a public charity that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.
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The organizers thoughtfully created the Rolling Jubilee Fund as a section 501(c)(4) organization, which is easier to qualify for than a section 501(c)(3) charitable organization (to which contributions would be deductible).
Tax-exempt social-welfare groups organized under section 501(c)(4) of the Internal Revenue Code are allowed to engage in some political activity, but the primary focus of their efforts must remain promoting social welfare.
The IRS has said applications from groups seeking to be treated as tax-exempt social-welfare groups under section 501(c)(4) of the tax code more than doubled from 2010 to 2012, presenting challenging legal issues.
"We urge you to protect legitimate section 501(c)(4) entities by preventing non-conforming organizations that are focused on federal election activities from abusing the tax code, " seven Democratic U.S. senators wrote then-IRS Commissioner Douglas Shulman last year.
Specifically, the IRS was looking into whether donors to certain tax-exempt organizations organized under section 501(c)(4) of the Tax Code would be liable for gift tax on donations that were, in many cases, well into the six figures.
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In addition, no Democratic leaders decried big money's influence when groups registered under section 501(c)(5) of the federal code the tax exemption for labor, agricultural or horticultural organizations spent hundreds of millions from corporate treasuries on advocacy and political activity.
Following the ruling, the number of politically oriented groups seeking tax exempt status as social welfare organizations under section 501 (c) (4) of the federal tax code increased greatly at a time when the federal government, including the IRS, was dealing with austerity measures that reduced or stagnated personnel and resources.
After the ruling, the number of politically oriented groups seeking tax exempt status as social welfare organizations under section 501 (c) (4) of the federal tax code increased greatly at a time when the federal government including the IRS was dealing with austerity measures that reduced or stagnated personnel and resources.
Democrats, raising an issue they have pressed for years, asked if part of the problem was because groups organizing under section 501(c)(4) of the tax code have operated under unclear rules since the Supreme Court in 2010 opened the door for corporations and other groups to spend unlimited amounts to influence campaigns.
Recent reports and discussions make it clear one or more IRS employees responded to a public information request from the news organization ProPublica by giving ProPublica pending applications and subsequent extensive correspondence with the IRS regarding the applications from a number of organizations seeking recognition of their exemption from tax under Section 501(c)(4) of the Internal Revenue Code.
But this unsavory episode should also shine a light on the law that gives tax-exempt status to political groups of all ideological stripes, often described by the code section that grants their exemption 501(c)(4)s.
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