Common Tax Law Restrictions on Activities of Exempt Organizations |
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The chart below compares seven federal tax law attributes of five common types of tax-exempt organizations.
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501(c)(3)
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501(c)(4) |
501(c)(5) |
501(c)(6) |
527 |
| Receive tax-deductible charitable contributions |
YES
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NO
|
NO
|
NO
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NO
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| Receive contributions or fees deductible as a business expense |
YES
|
YES
|
YES
|
YES
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NO
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| Substantially related income exempt from federal income tax |
YES |
YES |
YES |
YES |
YES |
| Investment income exempt from federal income tax |
LTD*
|
YES |
YES |
YES |
NO |
| Engage in legislative advocacy |
LTD |
YES |
YES |
YES |
LTD |
| Engage in candidate election advocacy |
NO |
LTD |
LTD |
LTD |
YES |
| Engage in public advocacy not related to legislation or election of candidates |
YES |
YES |
YES |
YES |
LTD |
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*Private foundations are subject to tax on their net investment income.
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Page Last Reviewed or Updated: August 31, 2009
