A social welfare organization will jeopardize its exemption under Code section 501(c)(4) if it ceases to operate primarily to further social welfare purposes. In addition, a tax-exempt organization that does not file a required annual return or notice for three consecutive years automatically loses its tax-exempt status.
Activities that do not further social welfare purposes, and thus may jeopardize an organization's tax-exempt status if they become the organization's primary activities, include:
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Business activity (including providing commercial-type insurance)