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Essentially, 501(c)(5) organizations are exempt from all federal income tax, except for any funds used for political activities or lobbying. Unlike 501(c)(3), contributions from members or other supporters to 501(c)(5) organizations are not tax-deductible as charitable contributions.
Pages in category "501(c)(4) nonprofit organizations"AARP.Acronym (organization)Adam Smith Foundation.Alaska Federation of Natives.Alaskans Together for Equality.Alliance for Natural Health USA.America First Policies.America Votes.More items...
501(c)(3) organizations are prohibited from engaging in any political campaign intervention activities. 501(c)(4) organizations may engage in political campaign intervention activities so long as such activities do not represent their primary activity.
IRS 557 provides details on the different categories of nonprofit organizations. Public charities, foundations, social advocacy groups, and trade organizations are common types of nonprofit organization.
In the United States, non-profit organizations are typically exempt from federal taxes. These organizations include charities, churches, schools, and labor unions. Non-profit tax exemptions depend on several factors, such as purpose, activities, and sources of income.
For example, a nonprofit organization may be tax-exempt under section 501(c)(3) if its primary activities are charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, or preventing cruelty to children or animals.
Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or other specified purposes and that meet certain other requirements are tax exempt under Internal Revenue Code Section 501(c)(3).
Exempt Organization TypesCharitable Organizations.Churches and Religious Organizations.Private Foundations.Political Organizations.Other Nonprofits.
A 501c7 is a social or recreational club organization that meets Internal Revenue Service criteria for tax-exempt status under IRS Code 501(c)(7). 501c7 organizations were initially granted exemption from federal income tax in the Revenue Act of 1916.
Most nonprofit organizations qualify for federal income tax exemption under one of 25 subsections of Section 501(c) of the Internal Revenue Code. Most associations are tax-exempt under Sections 501(c)(3) or (c)(6), and a smaller number under Sections 501(c)(4) or (c)(5).