Tax Tips: 501(c)(3) Organizations vs. 501(c)(4) Organizations: What’s the Difference?

Whether you’re donating to a local animal shelter, a soup kitchen, or an arts program, it feels great to give back. There are many different types of organizations to support. Let’s look at two of the most common:

  • 501(c)(3) organizations are nonprofit organizations that are dedicated to religious, charitable, or educational purposes. Donations to 501(c)(3) organizations may be tax deductible. These organizations may not attempt to influence legislation or participate in any campaign activity for or against political candidates.
  • 501(c)(4) organizations are social welfare groups that can engage in more lobbying and advocacy. Contributions to 501(c)(4) organizations may not be tax deductible.

It’s important to know what kind of organization you are donating to if you want to know if your contributions can be tax deductible.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from[9]
[9], May 27, 2020