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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.
A 501(c)(4) needs to ensure it is primarily engaged in social welfare activities. At least 51% of its activities must be aimed at ensuring the public is informed and participating in the public policy process. 501(c)(4)s can support the election or defeat of a candidate for public office as a secondary activity.
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.
As per the internal revenue code, 501(c)3 is a nonprofit organization for religious, charitable, scientific, and educational purposes. Donations to 501(c)3 are tax-deductible. Whereas on the other hand, 501(c)4 is a social welfare group, and donations to 501(c)4 are not tax-deductible.
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.
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.
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.
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).