Common Tax Law Restrictions on Activities of Exempt Organizations
The chart below compares seven federal tax law attributes of five common types of tax-exempt organizations.
|
501(c)(3) |
501(c)(4) | 501(c)(5) | 501(c)(6) | 527 | |
| Receive tax-deductible charitable contributions |
YES |
NO |
NO |
NO |
NO |
| Receive contributions or fees deductible as a business expense |
YES |
YES |
YES |
YES |
NO |
| 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 |
*Private foundations are subject to tax on their net investment income.
Page Last Reviewed or Updated: 2013-04-18
