US Tax Code — 501(c)(3) and 501(c)(4) Organisations
Summary
IRC §501(c)(3) provides tax exemption and donor deductibility for charitable, educational, religious and scientific organisations that are prohibited from partisan political activity and substantially limited in lobbying. §501(c)(4) organisations (social welfare) can engage in political activity as their primary purpose and can lobby without limit, but donations are not deductible. The distinction governs diaspora advocacy organisational structuring.
Relevance to the diaspora
Tamil-American diaspora organisations structure as 501(c)(3)s for fundraising efficiency and as 501(c)(4)s or PACs for political lobbying and electoral advocacy; material support law applies to both types, requiring careful due-diligence on grant recipients and partnerships.
Key provisions
- §501(c)(3) — charitable exemption; no partisan activity; limited lobbying
- §501(c)(4) — social welfare exemption; political activity permitted
- §509 — private foundation vs. public charity distinction
- §4941 — prohibited transactions for private foundations
Primary source
https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501Related entries
Where this law is used in the archive
No dossier, desk or evidence pack currently relies on this entry. It is indexed and sourced, but not yet load-bearing anywhere in the archive.