Myth: 501(c)(4)s must be operated “exclusively for the promotion of social welfare,” not politics.

While Section 501(c)(3) of the tax code specifically bars those organizations from engaging in political activity, no such statutory prohibition exists in Section 501(c)(4). Furthermore, while Section 501(c)(4) states that it applies to organizations operating exclusively for the promotion of “social welfare,” the statute does not define “social welfare.” Since when, in a democratic society, […]

Filed Under: IRS

501(c)(4)s are “charities,” and doing political work abuses their charitable status.

The tax code contains at least 30 different categories of nonprofits. What we think of as “charities” are typically organized under Section 501(c)(3). That section exists for “charitable” and “religious” organizations, and it is where one finds organizations such as churches, the Red Cross, the American Cancer Society and so on. Section 501(c)(4) is traditionally […]

Filed Under: IRS

What is the definition of candidate-related political activity?

The definitions of candidate-related political activity as outlined in the IRS proposal: Communications Communications that expressly advocate for a clearly identified political candidate or candidates of a political party. Communications that are made within 60 days of a general election (or within 30 days of a primary election) and clearly identify a candidate or political […]

Filed Under: IRS

The Center for Competitive Politics is now the Institute for Free Speech.