Tax-exempt organizations under § 501(c)(3) of the Internal Revenue Code face strict rules about regulating lobbying activities. Breaking these rules can result in severe consequences such as loss of tax-exempt status and excise tax penalties. For those § 501(c)(3) organizations that wish to expand their operations to encompass lobbying activities, two primary options exist.
Create and Operate an Affiliated § 501(c)(4) organization
Unlike § 501(c)(3) organizations, § 501(c)(4) organizations may engage in unlimited lobbying activities with the caveat that the § 501(c)(4)’s primary [...]Read more