In the News: The IRS and 501(c)(3) and 501(c)(4) Organizations: What’s the Big Difference?

In case you haven’t read the news lately, the IRS has been targeting conservative nonprofits, mostly 501(c)(4) organizations.  What are 501(c)(4)s?  Do you need to know the difference between a 501(c)(3) and a 501(c)(4)?  Do you need a 501(c)(4) in addition to your 501(c)(3)?

A Section 501(c)(3) organization may be a public charity or a private foundation, either of which is entitled to receive tax-deductible contributions.  That’s good news for prospective donors and charitable recipients alike! 

MULTI-STATE FUNDRAISING DISCLOSURES – THIS MESSAGE IS BROUGHT TO YOU BY. . .

Many states’ charitable solicitation statutes require charities to include mandatory disclosure.

The good news is that the majority of states do not currently require these often verbose disclosure statements be included on a nonprofit’s solicitation materials.  Further, other states merely require the charity to include the name and address of the organization, which presumably would occur anyway. And some states require disclosure statements only if a “professional solicitor” is used.