Currently, the IRS requires 501(c)(4) social welfare organizations to be “primarily engaged” in promoting social welfare. This means social welfare organizations can spend a minority of their total expenditures on political campaign activity without losing their exemption. As these organizations are not required to publicly disclose the sources of their funds, it also means that …
Posts Categorized: Advocacy
IRS Considers Reevaluating Politically Minded 501(c)(4) Orgs
As we posted here and here, advocates for campaign finance reform have been demanding for the past year that the IRS investigate politically motivated “social welfare” or 501(c)(4) organizations. These calls to action have finally paid off. Lois Lerner, the director of the IRS Exempt Organizations Unit, stated last week that the “IRS is aware …
IRS Increases Scrutiny of 501(c)(3) Political Activity During Election Cycle
Our clients often ask whether they can participate in legislative and political activity. While we encourage clients to lobby on behalf of their interests within the limits prescribed by law (see our previous post), 501(c)(3) organizations cannot engage in activity that supports or opposes candidates for public office. As you know from reading our previous …
Another Call for IRS to Investigate Social Welfare Orgs
As you know from our previous post, the IRS has increased its scrutiny of nonprofit organizations engaging in political activity (as it does every 4 years during the presidential election cycle). This is because while 501(c)(4) organizations are allowed to engage in lobbying without limit, they are not allowed to act in favor of or …
Advocacy Tips for Nonprofits
As we told you in a prior post, for many nonprofits, advocacy is an important tool for achieving exempt purposes. In a recent article published by The Chronicle of Philanthropy, successful advocates offer tips to help charities defend their interests. The tips include thanking supportive politicians, developing an agenda, and taking a united position. You …
Debt Deal is Existential Threat to Nonprofits
The debt deal itself, as well deeper cuts coming from Congress, threaten millions of jobs in the nonprofit sector and the tens of millions of Americans who rely on their services.