Have you taken steps to ensure that your charitable contributions are tax deductible? To be eligible for such favorable status, the organization must be qualified with the IRS as a “section 501(c)(3)” organization. Qualified tax-exempt organizations include religious institutions, social service providers, schools, and many others.
The recent IRS scandal confirms that the IRS is capable of, and at times does, abuse their regulatory authority over tax-exempt nonprofits. While most of the tax-exempt organizations involved thus far have apparently been section 501(c)(4) “social welfare” organizations, section 501(c)(3) public charities have also felt the bright lights of the IRS’s inappropriate content-based scrutiny.
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!