After a great deal of whipsawing as the rules flipped back and forth, politically-active nonprofits now have certainty from the IRS: section 501(c)(4) and 501(c)(6) organizations will not have to disclose the identity of their donors on their annual Form 990 filing with the IRS. However, some states are already beginning to require this information
IRS Says Training Candidates Not (c)(4) Activity: Are There Broader Implications Here?
By Lawrence H. Norton & Ronald M. Jacobs on
Posted in 501(c)(4), Independent Expenditures, Nonprofits, Tax-Exempt Status
The IRS recently revoked the 501(c)(4) status of an organization that identifies and trains potential candidates for one of the political parties. In doing so, the IRS borrowed a restriction from the law governing 501(c)(3)s, which requires such groups to serve a public rather than a private interest. There are reasons to doubt whether this…