A political organization does not need be incorporated or otherwise have formal organizing documents. A separate bank account in which political campaign funds are deposited and disbursed only for exempt function purposes can qualify as a political organization. If an organization has no formal organizing documents, consideration is given to statements (such as a resolution) of the organization’s members when it was formed that they intend to operate the organization primarily to carry on exempt functions. Federal or state initial registration filings (for example, Statement of Organization, FEC Form 1) made by the organization under applicable election laws, also can serve as evidence that the entity meets the organizational test.
If an organization is formally chartered or created as a corporation, trust, or association, however, its organizing document must include a statement of purposes that limits its purposes to those described in section 527. For example, a statement that the organization’s primary purpose is to conduct one or more exempt functions would satisfy the organizational test.
TIP: Organizing as a separate entity may have benefits under state law that are beyond the scope of this website. Consult an attorney or other adviser if you have questions about choosing an organizational structure.