Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 6Civic Leagues and Local Associations of Employees: § 501(c)(4)

• § 6.2 Qualifying and Nonqualifying Civic Organizations
  • (a) Limitation on Involvement with Political Candidates

§ 6.2 Qualifying and Nonqualifying Civic Organizations

(a) Limitation on Involvement with Political Candidates

p. 154. Insert at end of second paragraph:

The IRS explained its reasons for revoking a (c)(4) organization's exemption by saying,

You state on your Form 1024 that you will conduct two activities: public education and outreach and grant making. Public education and outreach programs, which you initially indicated would comprise 90% of your time, are intended to inform the general public about current issues that may impact them and to promote non-partisan causes that will help xxx. You plan to publish information in print, on the Internet, and through e-mail distributions. To ensure that you effectively identify new issues and legislation that could impact your ideals, you state that you will monitor legislation, court decisions, administrative orders, and executive actions on an on-going basis. You plan to send public officials letters and issue press releases to educate and advocate your position. In order to help inform and educate the public in a more comprehensive and effective manner, you plan to utilize direct mail as well as television and radio advertisements to advocate your positions on issues and legislation.

In your letter dated xxx,¹ you indicated that you have focused ...