501(c)4

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501(c)4

A subsection of the Internal Revenue Code governing the status of non-profit organizations devoted to lobbying for political, civic, or other, similar causes. 501(c)4 organizations are exempt from federal taxation. However, contributions and donations made to them are not tax exempt. Examples of 501(c)4 organizations include political campaigns and groups that advocate for certain issues. In order to qualify for 501(c)4 status, all of the organization's earnings must be used for social welfare purposes.
References in periodicals archive ?
Corporations, whether they are for profit or nonprofit, 501c4s, LLCs, 501c6s, we know that they are engaging in political advocacy and they are using their corporate structure to shield who the real money people are behind those organizations.
(134.) Mannies, supra note 131 ("501C4s don't have to report their donors or file detailed reports on their spending, as PACs must do.").
The use of 501c4s, Super PACs, and trade associations to hide political spending is spreading and represents a profound threat to our democratic system and to companies themselves.