Tax treatment of donations to section 501(c)(5) organizations


Contributions to labor, agricultural, and horticultural organiza­tions generally are not deductible as charitable contribu­tions for federal income tax purposes. They may be deductible as trade or business expenses, if they are ordinary and nec­essary in the conduct of the taxpayer's trade or business. See Nondeductible Lobbying and Political Expenditures for more information. Unreimbursed employee expenses, such as union dues, may be deductible; see Publication 529, Miscellaneous DeductionsPDF, for more information. Also, the organization may be required to disclose that contributions are not deductible when it solicits them.

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