Section 501 C 4

Social welfare organizations are created under section 501 c 4 of the internal revenue code and are often referred to as 501 c 4 organizations.

Section 501 c 4. To be tax exempt as a social welfare organization described in internal revenue code irc section 501 c 4 an organization must not be organized for profit and must be operated exclusively to promote social welfare. Social welfare organizations. Corporations that have been granted 501 c 4 status by the internal revenue service are exempt from federal income tax.

The earnings of a section 501 c 4 organization may not inure to the benefit of any private shareholder or individual. 156 that provides rush hour commuter bus service benefits only to those individuals who have a need for that service. Contribu tions to civic leagues or other section 501 c 4 organizations generally are not deductible as charitable contributions for federal income tax purposes.

There is no requirement that a section 501 c 4 organization provide equal benefits to every member of the community. However unlike 501 c 3 organizations donations to 501 c 4 entities are not tax deductible for the individual or corporation making the donation. Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare and.

501 c 4 refers to a section of the u s. They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer s business. Their primary purpose is to in some way promote the common good and general welfare of the community for example by bringing about civic betterments and social improvements.

The organization described in rev.