CHAPTER 6Civic Leagues and Local Associations of Employees: § (c)(4)
(c) Comparison of § 501(c)(3) and § 501(c)(4) organizations.
p.149. Insert the table below after the text of paragraph (c)
| Characteristic | 501(c)(3) (Public Charities) | 501(c)(4) |
|---|---|---|
| May be organization or operated for more than insubstantial profit purposes | No | No |
| May restrict membership to a select group of individuals or businesses | No | No |
| Subject to the IRC § 4958 rules prohibiting private inurement of disqualified persons | Yes | Yes |
| Can engage in unlimited lobbying in furtherance of the organization's exempt purpose | No | Yes |
| May participate in limited political activities as long as not the primary activity of the organizations | No | Yes |
| May participate in limited voter registration activities | Yes | Yes |
| Must have a dissolution clause distributing assets to a qualified charitable purpose | Yes | No |
| Can endorse candidates for political office | No | Yes |
| Political campaign spending | No | Yes—Not primary activity |
| May participate in educational advocacy activities in furtherance of the organization's exempt purpose | Yes—Insubstantial | Yes—Unlimited |
| Subject to excise tax on lesser of qualified ... |
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