Other Tax Exempt Organizations

Organizations with tax exemption under other sections of the Internal Revenue Code do not enjoy the benefits of deductibility of donations or eligibility for certain grants, but are generally relieved from federal income tax. They also may have fewer restrictions on political campaign and lobbying activities.

501(c)(4): Social Welfare Organizations

“(A) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.”

“(B) Subparagraph (A) shall not apply to an entity unless no part of the net earnings of such entity inures to the benefit of any private shareholder or individual.”

Further reading: IRS Publication on 501(c)(4) Organizations

501(c)(5): “Labor, agricultural, or horticultural organizations”

Further reading: IRS Publication on 501(c)(5) organizations

501(c)(6): Business Leagues and Chambers of Commerce

“Business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.”

Further reading: IRS Publication on 501(c)(6) Organizations

501(c)(7): Social and country clubs

“Clubs organized for pleasure, recreation, and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder.”

501(c)(8) & (10): Fraternal Societies

“(8) Fraternal beneficiary societies, orders, or associations—(A) operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and (B) providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents” and “(10) Domestic fraternal societies, orders, or associations, operating under the lodge system—(A) the net earnings of which are devoted exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and (B) which do not provide for the payment of life, sick, accident, or other benefits.”

Further reading: IRS Publication on Fraternal Societies

527: Political Organizations

“[A] party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function.” 527(e)(1). “The term ‘exempt function’ means the function of influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any Federal, State, or local public office or office in a political organization, or the election of Presidential or Vice-Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed.” 527(e)(2).

Compiled by Cameron Holland.