What Is A 501(c)(4) Nonprofit Organization?

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Күн бұрын

When someone talks about nonprofits, the first thing that comes to mind for most people is a 501(c)(3) charity. That makes sense, given that the majority of nonprofits have this tax-exemption designation. But charitable nonprofits don’t tell the whole story. There are also many other types of nonprofits whose work accomplishes important, noncommercial purposes, ranging from trade associations to recreational clubs to social welfare nonprofits. It’s the latter one that is the focus of our video…that is, the 501(c)(4) social welfare organization.
📚 ADDITIONAL RESOURCES:
•ARTICLE: “What is a 501(c)(4)?” bit.ly/3t1293i
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•Fill out this form for a FREE consultation on how to start a nonprofit: bit.ly/3Tu9nYE
•Register for Fundraising TV: www.501c3.org/fundraising-tv/
•Download the FREE eBook “10 Things You Need to Know Before Starting a Nonprofit” bit.ly/3XhFag0
0:00 Introduction
0:48 501(c)(4) Defined
1:26 What is Social Welfare?
1:47 Homeowners Associations
2:16 Advocacy Groups
3:38 Political Groups
4:36 Public Accommodations
5:15 How To Start a 501(c)(4)
5:56 Tax Treatment of Contribution
7:36 Conclusion

Пікірлер: 28

@FoundationGroup 2 жыл бұрын

If you need help filing for IRS 501(c)(3) status, we’d love to help! You can fill out our contact form at bit.ly/3i6rFxz or give us a call at 888-361-9445.

@caseydwayne Жыл бұрын

I spent hours on the IRS site trying to figure out whether to go 3 or 4 for a political organization. This one video summed it up in 8 minutes.

@FoundationGroup Жыл бұрын

Glad the video helped, Casey! If you need assistance setting it all up, give us a shout.

@GMoney_1973 Жыл бұрын

Outstanding video and so helpful.

@GiselleTrujillo Жыл бұрын

THANK YOU SOOOO MUCH FOR SHARING VALUABLE INFORMATION FROM YOUR YEARS OF KNOWLEDGE AND EXPERIENCE. THANK YOU, THANK YOU, THANK YOU FOR SUCH CLEAR DETAILS AND INFORMATIONAL VIDEOS.

@spicesbizarrefuntreats Жыл бұрын

fabulous

@MarshallMcFarlin 3 ай бұрын

501c(4)=FREEDOM

@lostmind2235 2 жыл бұрын

You make great content keep it up!

@FoundationGroup 2 жыл бұрын

Thanks, will do!

@waynecmontgomery 2 жыл бұрын

Hey Greg, Awesome 👍 video, very educational. You should have mentioned there is NO public support test.

@FoundationGroup 2 жыл бұрын

Great point!

@greg8264 10 ай бұрын

Are 501(c)4 organizations required to submit finance reports to the Secretary of State or boards of elections for issue or candidate donations?

@pamelaf5913 11 ай бұрын

What type of employee are in a 501c4 what are common salaries

@amandajones661 10 ай бұрын

Do y'all provide in-house training? I would pay to attend training at your office.

@seanrice5693 Жыл бұрын

I want to establish a family bank. The point is to lend money to the members for education, housing and vehicle purchases. I was thinking 501c4. Is there a better option?

@pamelaf5913 11 ай бұрын

How do 501c4 pay employee s do tether to reserve some of the funds raised for that purpose

@FoundationGroup 11 ай бұрын

Paying employees is a legitimate expense for any nonprofit, whether it's a 501c3 or 501c4, or even something else. As long as the position is deemed necessary by the leadership and the payrate is reasonable, then yes, you can use funds raised to pay salaries. You had also asked about types of employees. There's no set answer on that. It's the same as it would be for any business or nonprofit, that is whatever positions you deem necessary. Maybe an Executive Director/CEO, administrative positions, etc.

@thebestken Ай бұрын

Can an institution working to proctor student exams for a fee be a non-profit as it is helping the distance learning and local community to take their exams easily. thanks.

@FoundationGroup Ай бұрын

From what you describe, we would probably say, "No", to that. It's a fee-for-service arrangement with no real distinction from a commercial business. You may be facilitating education, as you suggest, but that's indirect at best. Fee for service nonprofits must have mission accomplishment be the direct result of the service being sold to not be considered a commercial-equivalent activity.

@ImperatorScientia 2 жыл бұрын

So, a 501c4 is expressly forbidden from donating directly to candidates; they therefore require the creation of a separate PAC to do so, is that correct?

@FoundationGroup 2 жыл бұрын

It's really more than that. A 501(c)(4) can donate to a candidate's campaign, so long as it's not substantial. The Federal Election Campaign Act, or FECA, sets the limits. If the donations are too substantial, or there is other ongoing interaction, the Federal Election Commission may determine that the entities are, in fact, coordinating with each other, which is not allowed. The 501(c)(4) can endorse the candidate, and even produce content promoting that same candidate. But coordination is prohibited. Confusing, I know. And somewhat subjective, as well.

@wendiwood4145 Жыл бұрын

Where can one get D&O insurance for a 501(c)4, for its Directors and Officers?

@FoundationGroup Жыл бұрын

Hi, Wendi. We don't endorse any particular insurance company for this. Here's a site that compares different options. We would recommend reviewing several comparison sites like this. You can find them with a simple Google search. www.thebalancesmb.com/best-d-and-o-insurance-5115733

@GiselleTrujillo Жыл бұрын

GREAT QUESTION, THANK YOU FOR ASKING.

@JC-so1eh Жыл бұрын

I am looking to apply for tax exemption to raise money to buy materials and pay for insurance to build local pantries in public city parks. Is this a 501c4 or 501c3?

@FoundationGroup Жыл бұрын

Hard to say without more info. However, if the pantries are to help needy people, you might very well qualify for 501c3.

@nattytwe 2 жыл бұрын

Whoa there… what about Planned Parenthood?

@FoundationGroup 2 жыл бұрын

Multiple entities. PP is a 501(c)(3), but they also have a 501(c)(4) lobbying arm. Not uncommon with advocacy groups, no matter which side of the spectrum they reside on.