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In addition to 501c3 organizations, 501c3 nonprofits can also donate to 501c4 organizations. These contributions must be used for charitable purposes, and no amount can be used for political activities.
Form a board of directors: Organize your nonprofit board members, which the IRS requires to consist of at least three people. Look for interested individuals on job boards, across your network, and on LinkedIn. Create your nonprofit bylaws: Establish your organization's purpose.
The biggest difference between 501(c)(3) and 501(c)(4) fundraising is that 501(c)(3) organizations generally raise the majority of their funds from foundations while 501(c)(4) organizations rely on support from individuals, in the form of large and small contributions.
Get clear on your purpose. ... Name your 501c4 organization. ... Form a board of directors. ... Create your organization's bylaws. ... File incorporation paperwork at the state level. ... Get an Employer Identification Number (EIN). ... Submit IRS Form 8976, a notice of intent to operate under section 501(c)(4).
To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare.
It is not uncommon for a 501(c)(3) to establish an affiliated 501(c)(4). Unquestionably, during a long- term lobbying campaign to change public policy, affiliated organizations enjoy many advantages. There are issues an affiliated organization needs to watch for.
Recruit Incorporators and Initial Directors You will need at least one, but can have more than one. Directors make up the governing body of your nonprofit corporation and are stakeholders in your organization's purpose and success. You'll want to identify three, unrelated individuals to meet IRS requirements.
To receive a letter of recognition from the IRS, a 501(c)(4) organization must file a Form 1024 (?Application for Recognition of Exemption Under Section 501(a)?) within 27 months of formation to receive a letter recognizing exempt status dating back to the formation of the organization.