501(c) organization

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A 501(c) organization, also known colloquially as a 501(c), is a tax-exempt nonprofit organization in the United States. Section 501(c) of the United States Internal Revenue Code (26 U.S.C. § 501(c)) provides that 29 types of nonprofit organizations are exempt from some federal income taxes. Sections 503 through 505 set out the requirements for attaining such exemptions. Many states refer to Section 501(c) for definitions of organizations exempt from state taxation as well. 501(c) organizations can receive unlimited contributions from individuals, corporations, and unions.

The most common type of tax-exempt nonprofit organization falls under category 501(c)(3), whereby a nonprofit organization is exempt from federal income tax if its activities have the following purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, or preventing cruelty to children or animals. The 501(c)(4) and 501(c)(6) categories are for politically active nonprofits, which have become increasingly important since the 2004 presidential election.

Types

According to the IRS Publication 557, in the Organization Reference Chart section, the following is an exact list of 501(c) organization types and their corresponding descriptions.[1]

Other tax-exempt organizations

General compliance

Under Section 511, a 501(c) organization is subject to tax on its "unrelated business income", whether or not the organization actually makes a profit, but not including selling donated merchandise or other business or trade carried on by volunteers, or certain bingo games.[21] Disposal of donated goods valued over $2,500, or acceptance of goods worth over $5,000 may also trigger special filing and record-keeping requirements.

Tax exemption does not excuse an organization from maintaining proper records and filing any required annual or special-purpose tax returns, e.g., 26 U.S.C. § 6033 and 26 U.S.C. § 6050L. Prior to 2008, an annual return was not generally required from an exempt organization accruing less than $25,000 in gross income yearly.[22] Since 2008, many such organizations must file a yearly "e-Postcard" known as Form 990-N, or risk losing their exemption, with the maximum accrual being $50,000 to file a 990-N.[23] Form 990-N must be submitted electronically using an authorized IRS e-file provider. Other types of Form 990 may be submitted via mail and some are available electronically through an IRS e-file provider.

Failure to file required returns such as Form 990 (Return of Organization Exempt From Income Tax) may result in fines of up to $250,000 per year. Exempt or political organizations, excluding churches or similar religious entities, must make their returns, reports, notices, and exempt applications available for public inspection. The organization's Form 990 (or similar such public record as the Form 990-EZ or Form 990-PF) is available for public inspection and photocopying at the offices of the exempt organization, through a written request and payment for photocopies by mail from the exempt organization, or through a direct Form 4506-A "Request for Public Inspection or Copy or Political Organization IRS Form" request to the IRS of for the past three tax years. Form 4506-A also allows the public inspection and/or photocopying access to Form 1023 "Application for Recognition of Exemption" or Form 1024, Form 8871 "Political Organization Notice of Section 527 Status", and Form 8872 "Political Organization Report of Contribution and Expenditures". Internet access to many organizations' 990 and some other forms are available through GuideStar.[24]

Failure to file such timely returns and to make other specific information available to the public also is prohibited.[25]

501(c)(3)

A 501(c)(3) or 501c3 organization, also colloquially known as a 501c3, is a United States nonprofit organization that has been approved by the Internal Revenue Service to be tax-exempt under the terms of section 501(c)(3) of the Internal Revenue Code. Most charitable non-profits in the United States that Americans commonly know of, and often make donations to, are 501(c)(3) organizations.

An approved 501(c)(3) exemption allows donors to the organization to reduce their own taxable incomes by deducting the amounts of their donations given, and thus to reduce their personal income taxes, and it allows the 501(c)(3) organization to avoid federal income taxes on the difference between revenues (donations, grants, service fees) received vs. expenses (wages, supplies, state and local taxes paid, etc.) in its main operations. In a for-profit business, that difference would represent taxable income and be taxed at federal corporate tax rates of 15 to 39 percent.[26] 501c3 status may also provide exemption from state and local corporate income taxes that range from 0 to 12 percent.[27]

501(c)(3) exemptions apply to corporations organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for testing for public safety, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals. 501(c)(3) exemption applies also for any non-incorporated community chest, fund, cooperating association or foundation that is organized and operated exclusively for those purposes.[28][29] There are also supporting organizations—often referred to in shorthand form as "Friends of" organizations.[30][31][32][33][34]

Another provision, 26 U.S.C. § 170, provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501(c)(3) organizations, among others. Regulations specify which such deductions must be verifiable to be allowed (e.g., receipts for donations over $250). Due to the tax deductions associated with donations, loss of 501(c)(3) status can be highly challenging to a charity's continued operation, as many foundations and corporate matching programs do not grant funds to a charity without such status, and individual donors often do not donate to such a charity due to the unavailability of the deduction.

Testing for public safety is described under section 509(a)(4) of the code, which makes the organization a public charity and not a private foundation,[35] but contributions to 509(a)(4) organizations are not deductible by the donor for federal income, estate, or gift tax purposes.

The two exempt classifications of 501(c)(3) organizations are as follows:[36]

Churches must meet specific requirements in order to obtain and maintain tax exempt status; these are outlined in IRS Publication 1828: Tax guide for churches and religious organizations.[37] This guide outlines activities allowed and not allowed by churches under the 501(c)(3) designation. A private, nonprofit organization, GuideStar, also provides information on 501(c)(3) organizations.[38]

Before donating to a 501(c)(3) organization, a donor may wish to consult the searchable online IRS list of charitable organizations[39] as well as lists that may be maintained by a state on a portion of its web portal devoted to its "department of justice" or "office of attorney general".

Consumers may file IRS Form 13909 with documentation to complain about inappropriate or fraudulent (i.e., fundraising, political campaigning, lobbying) activities by any 501(c)(3) tax-exempt organization.[40] Think tanks are often incorporated as 501(c)(3) organizations, and such a level of political influencing is usually considered acceptable.

Obtaining status

The basic requirement of obtaining tax-exempt status is that the organization is specifically limited in powers to purposes that the IRS classifies as tax-exempt purposes. Unlike for-profit corporations that benefit from broad and general purposes, non-profit organizations need to be limited in powers to function with tax-exempt status, but a non-profit corporation is by default not limited in powers until it specifically limits itself in the articles of incorporation and/or nonprofit corporate bylaws. This limiting of the powers is crucial to obtaining tax exempt status with the IRS and then on the state level.[41] Organizations acquire 501(c)(3) tax exemption by filing IRS Form 1023. As of 2006 the form must be accompanied by a $850 filing fee if the yearly gross receipts for the organization are expected to average $10,000 or more.[42][43] If yearly gross receipts are expected to average less than $10,000, the filing fee is reduced to $400.[42][43] There are some classes of organizations that automatically are treated as tax exempt under 501(c)(3), without the need to file Form 1023:

The IRS also expects to release a software tool called Cyber Assistant, which assists with preparation of the application for tax exemption, but as of late 2011 the release date is unclear.[46]

There is an alternative way for an organization to obtain status if an organization has applied for a determination and either there is an actual controversy regarding a determination or the Internal Revenue Service has failed to make a determination. In these cases, the United States Tax Court, the United States District Court for the District of Columbia, and the United States Court of Federal Claims have concurrent jurisdiction to issue a declaratory judgment of the organization's qualification if the organization has exhausted administrative remedies with the Internal Revenue Service.[47][48]

Prior to October 9, 1969, nonprofit organizations could declare themselves to be tax-exempt under Section 501(c)(3) without first obtaining Internal Revenue Service recognition by filing Form 1023 and receiving a determination letter.[49] A nonprofit organization that did so prior to that date could still be subject to challenge of its status by the Internal Revenue Service.[49]

Political activity

Section 501(c)(3) organizations are prohibited from supporting political candidates, and are subject to limits on lobbying. They risk loss of tax exempt status if these rules are violated.[50][51] An organization that loses its 501(c)(3) status due to being engaged in political activities cannot then qualify for 501(c)(4) status.[52]

Elections

Organizations described in section 501(c)(3) are prohibited from conducting political campaign activities to intervene in elections to public office.[53] The Internal Revenue Service website elaborates on this prohibition:[54]

Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.

Certain activities or expenditures may not be prohibited depending on the facts and circumstances. For example, certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner do not constitute prohibited political campaign activity. In addition, other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not be prohibited political campaign activity if conducted in a non-partisan manner.

On the other hand, voter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention.

Lobbying

In contrast to the prohibition on political campaign interventions by all section 501(c)(3) organizations, public charities (but not private foundations) may conduct a limited amount of lobbying to influence legislation. Although the law states that "No substantial part..." of a public charity's activities can go to lobbying, charities with large budgets may lawfully expend a million dollars (under the "expenditure" test), or more (under the "substantial part" test) per year on lobbying.[55]

Conable election

The Internal Revenue Service has never defined the term "substantial part" with respect to lobbying.[56]

In order to establish a safe harbor for the "substantial part" test, the United States Congress enacted §501(h), called the Conable election after its author, Representative Barber Conable. The section establishes limits based on operating budget that a charity can use to determine if it meets the substantial test. This changes the prohibition against direct intervention in partisan contests only for lobbying. The organization is now presumed in compliance with the substantiality test if they work within the limits. The Conable election requires a charity to file a declaration with the IRS and file a functional distribution of funds spreadsheet with their Form 990. IRS form 5768 is required to make the Conable election.[57]

501(c)(4)

A 501(c)(4) organization is a social welfare organization, such as a civic organization or a neighborhood association. An organization is considered by the IRS to be operated exclusively for the promotion of social welfare if it is primarily engaged in promoting the common good and general welfare of the people of the community.[52][58] Net earnings must be exclusively used for charitable, educational, or recreational purposes.[59]

Allowed activities

501(c)(4) organizations may inform the public on controversial subjects and attempt to influence legislation relevant to its program[60] and, unlike 501(c)(3) organizations, they may also participate in political campaigns and elections, as long as their primary activity is the promotion of social welfare and related to the organization's purpose.[61][62]

The income tax exemption for 501(c)(4) organizations applies to most of their operations, but income spent on political activities—generally the advocacy of a particular candidate in an election—is taxable.[63] An "action" organization generally qualifies as a 501(c)(4) organization.[64] An "action" organization is one whose activities substantially include, or are exclusively,[65] direct or grassroots lobbying related to advocacy for or against legislation or proposing, supporting, or opposing legislation that is related to its purpose.[66]

A 501(c)(4) organization may directly or indirectly support or oppose a candidate for public office as long as such activities are not a substantial amount of its activities.[52][67]

A 501(c)(4) organization that lobbies must register with the Clerk of the House if it lobbies members of the House or their staff.[62] Likewise, a 501(c)(4) organization must register with the Secretary of the Senate if it lobbies members of the Senate or their staff.[62] In addition, the 501(c)(4) organization must either inform its members the amount it spends on lobbying or pay a proxy tax to the Internal Revenue Service.[62] Lobbying expenses and political expenses are not deductible as business expenses.[62]

Electioneering communications

The use of 501(c)(4) organizations has been affected by the 2010 Citizens United decision, in which the Supreme Court struck the part of the McCain-Feingold Act that prohibited for-profit corporations, non-profit corporations, and labor unions from broadcasting electioneering communications. The Act defined an electioneering communication as a communication that mentions a candidate's name 60 days before a primary or 30 days before a general election. Through 501(c)(4) organizations, electioneering communications can since be aired at any time.

Contributions

Contributions to 501(c)(4) organizations are usually not deductible as charitable contributions for U.S. federal income tax, with a few exceptions.[68] Dues or contributions to 501(c)(4) organizations may be deductible as a business expense under IRC 162, although amounts paid for intervention or participation in any political campaign, direct lobbying, grass roots lobbying, and contact with certain federal officials are not deductible.[69] If a 501(c)(4) engages in a substantial amount of these activities, then only the amount of dues or contributions that can be attributed to other activities may be deductible as a business expense.[70]

The organization must provide a notice to its members containing a reasonable estimate of the amount related to lobbying and political campaign expenditures, or else it is subject to a proxy tax on its lobbying and political campaign expenditures. It must also state that contributions to the organization are not deductible as charitable contributions during fundraising.[69]

501(c)(4) organizations are not required to disclose their donors publicly.[71] The lack of disclosure has led to extensive use of the 501(c)(4) provisions for organizations that are actively involved in lobbying, and has become controversial.[72][73] Criticized as "dark money", spending from these organizations on political TV ads has exceeded spending from Super PACs.[74][75] Spending by organizations that do not disclose their donors has increased from less than $5.2 million in 2006 to well over $300 million in the 2012 election.[76]

History

The origins of 501(c)(4) organizations date back to the Revenue Act of 1913, which created a new group of tax-exempt organizations dedicated to social welfare in a precursor to what is now Internal Revenue Code Section 501(c)(4).[77]

501(c)(5)

A 501(c)(5) organization is a labor organization, an agricultural organization, or a horticultural organization. Labor unions, county fairs, and flower societies are examples of these types of groups. Labor union organizations were a primary benefactor of this organization type, dating to the 19th century. According to the Internal Revenue Service, a 501(c)(5) organization has a duty of providing service to its members first. The organization's benefits may not inure to a specific member, but the rules for inurement vary among the three different types of organizations under this segment. A 501(c)(5) organization can make unlimited corporate, individual, or union contributions.[78]

A labor organization may pay benefits to its members because paying benefits improves all members' shared working conditions. An agricultural organization can provide financial assistance to its members in order to improve the conditions of those engaged in agricultural pursuits generally. Members can benefit in incidental ways from the organization's exempt activities as long as the benefits are available to all persons.[78]

History

The first exemption for labor organizations from corporate income tax was enacted as part of the Payne–Aldrich Tariff Act of 1909.[79][80]

The Revenue Act of 1913 excluded "labor, agricultural, or horticultural organizations" from income tax liability.[80][81]

Because associations involved in fishing and seafood harvesting were having difficulties qualifying for reduced postal rates,[82] in 1976 Congress established Internal Revenue Code Section 501(g) to define "agriculture" as the art or science of cultivating land, harvesting crops or aquatic resources, or raising livestock.[80]

501(c)(6)

A 501(c)(6) organization is a business league, chambers of commerce like the U.S. Chamber of Commerce, a real estate boards, a board of trade, or an organization like the Edison Electric Institute and the Security Industry Association, which are not organized for profit and no part of the net earnings goes to the benefit of any private shareholder or individual.

Contributions and activities

Much like 501(c)(4) organizations, 501(c)(6) organizations may also perform some political activities.[56]

501(c)(6) organizations can receive unlimited contributions from corporations, individuals, and labor unions. The U.S. Chamber of Commerce is a large political spender, and Freedom Partners used its status as a 501(c)(6) organization to raise and distribute over $250 million during the 2012 election campaigns without disclosing its donors.[83] The group's existence was not publicly known until nearly a year after the election.

History

The predecessor of IRC 501(c)(6) was enacted as part of the Revenue Act of 1913[84] likely due to a U.S. Chamber of Commerce request for an exemption for nonprofit "civic" and "commercial" organizations, which resulted in IRC 501(c)(4) for nonprofit "civic" organizations and IRC 501(c)(6) for nonprofit "commercially-oriented" organizations. The Revenue Act of 1928 amended the statute to include real estate boards.[85] In 1966, professional football leagues were added to the described organizations.[86]

The Revenue Act of 1913 related to professional football leagues had both antitrust and tax provisions: The antitrust provision was enacted to permit the merger of the National and American Football Leagues to go forward without fear of an antitrust challenge under either the 1914 Clayton Antitrust Act or the 1914 Federal Trade Commission Act.[87] IRC 501(c)(6) amendment was enacted in 1966 to ensure that a professional football league's exemption would not be jeopardized because it administered a players' pension fund.[88] Senator Tom Coburn introduced legislation to disallow a tax exemption for the National Football League, the Professional Golfers' Association, and other professional sports organizations.[89][90] Coburn estimated the tax exemption cost $100 million, but he said he could not get other congresspeople to support the legislation.[89][90]

See also

Notes

  1. ↑ 501(c)(20) organizations are no longer tax-exempt under Section 501(c)(20) after June 30, 1992, but they may request to become exempt under Section 501(c)(9) effective July 1, 1992.[3]
  2. ↑ Veterans organizations may be exempt under Section 501(c)(23) only if the organization was created before 1880. Other veterans organizations may be exempt under Section 501(c)(4) instead.
  3. ↑ 501(c)(24) organizations are described as Section 4049 ERISA Trusts; Section 4049 of ERISA has been repealed.[4]
  4. ↑ The Section 501(c)(29) tax exemption for qualified nonprofit health Insurance issuers was created in section 1322(h)(1) of the Affordable Care Act[5]

References

  1. ↑ "Publication 557: Tax-Exempt Status For Your Organization" (PDF). Internal Revenue Service. June 2008. pp. 65–66. Retrieved January 27, 2009.
  2. ↑ "IRC 501(c)(2) Title-holding Corporations" (pdf). 1986 EO CPE Text. Internal Revenue Service. 1986. Retrieved 2 July 2012.
  3. ↑ "Publication 557: Tax Exempt Status for Your Organization" (PDF). Internal Revenue Service. p. 60.
  4. ↑ "29 USC § 1349". Legal Information Institute. Cornell University Law School. Retrieved 16 May 2013.
  5. ↑ "Guidance on Requirements for Tax-Exempt 501(c)(29) Qualified Nonprofit Health Insurance Issuers". Internal Revenue Service. March 11, 2011. Archived from the original on March 15, 2011.
  6. 1 2 3 "Part 4. Examining Process: Chapter 76. Exempt Organizations Examination Guidelines: Section 29. Apostolic Associations - IRC 501(d)". Internal Revenue Manual. Internal Revenue Service.
  7. ↑ Rev. Rul. 57-574, 1957-2 c.b. 161.
  8. ↑ "26 CFR 1.501(e)-1 - Cooperative hospital service organizations". Legal Services Institute.
  9. ↑ "26 U.S. Code § 501(e)". Legal Information Institute.
  10. ↑ Wikisource:United States Code/Title 26/Chapter 1/Subchapter F/Part I/Section 501#k
  11. 1 2 3 "Part 7. Rulings and Agreements; Chapter 25. Exempt Organizations Determinations Manual; Section 3. Religious, Charitable, Educational, Etc., Organizations (Cont. 1); 7.25.3.7.11.4 (02-23-1999) Child Care Organizations". Internal Revenue Service. Retrieved 29 July 2013.
  12. 1 2 "IRC 501(k) – Child Care Organizations" (PDF). 1986 EO CPE Text. Internal Revenue Service. 1986.
  13. 1 2 "IRC 501(k) – Child Care Organization" (PDF). 1989 EO CPE Text. Internal Revenue Service. 1989.
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  15. ↑ "Part 4. Examining Process: Chapter 44. Subchapter T Cooperatives: Section 1. IRC section 521 Exempt Farmers' Cooperatives". Internal Revenue Manual. Internal Revenue Service.
  16. ↑ 26 U.S. Code § 527 - Political organizations". Legal Information Institute. Accessed December 4, 2015.
  17. 1 2 Porter, Gary. "501(c)(4) Tax Exempt Homeowners Associations". Hinricher, Douglas & Porter, LLP. Accessed March 1, 2016.
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  19. ↑ "2015 Instructions for Form 1120-H: U.S. Income Tax Return for Homeowners Associations". Internal Revenue Service. Accessed on March 1, 2016.
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  21. ↑ 26 U.S.C. § 513(f).
  22. ↑ Internal Revenue Bulletin 23, 1982, exercising 26 U.S.C. § 6033(a)(2)(B).
  23. ↑ "Annual Electronic Filing Requirement for Small Exempt Organizations – Form 990-N (e-Postcard)". Irs.gov. Archived from the original on 5 May 2009. Retrieved 28 May 2009.
  24. ↑ Guidestar access to recent 990 filings is available for free, but requires one to open a free account.
  25. ↑ usc|26|6652 and 26 U.S.C. § 6104.
  26. ↑ "Corporate and Individual Tax Data".
  27. ↑ "Corporate tax rates table (global corporate tax rates between 2006 and 2014)". KPMG.
  28. ↑ Exempt Purposes – Internal Revenue Code Section 501(c)(3).
  29. ↑ IRS Publication 557 "Tax-Exempt Status For Your Organization", Page 19, (Rev. June 2008), Cat. No 46573C., Retrieved 2009-03-09.
  30. ↑ Hopkins, Bruce R. (2011), The Law of Tax-Exempt Organizations (10 ed.), John Wiley and Sons, p. 879, ISBN 978-0-470-60217-1
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  36. ↑ IRS, "Life Cycle of a Public Charity/Private Foundation", IRS.gov, Retrieved 2009-03-09.
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  41. ↑ "IRS Exemption requirements: 501(c)(3) organizations"
  42. 1 2 IRS "Form 1023" (Rev. 6-2006), p. 12.
  43. 1 2 IRS Exempt Organizations Website Retrieved on 2009-09-07.
  44. ↑ 26 U.S.C. § 508(c)(1)(A)
  45. ↑ 26 U.S.C. § 508(c)(1)(B)
  46. ↑ "Should You Wait For the Cyber 1023?". 501c3book.
  47. ↑ "Internal Revenue Code 7428". Internal Revenue Service. via Legal Information Institute, Cornell University. Retrieved 2 October 2013.
  48. ↑ Journy, Matthew T.; Ziffer, Yosef; Tenenbaum, Jeffrey S. (September 2013). "Tools for Bypassing IRS Delays in EO Applications: Organizations and their representatives missed opportunities to mitigate the consequences of the IRS' delays and requests for inappropriate information" (PDF). Venable LLP. Retrieved 2 October 2013.
  49. 1 2 "Internal Revenue Manual, Part 4. Examining Process, Chapter 72. Employee Plans Technical Guidelines, Section 13. 403(b) Plans, 4.72.13.8.6 Eligibility - Examination Steps, Paragraph 1(F)". Internal Revenue Service. Retrieved May 15, 2015.
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  51. ↑ Amelia Elacqua, Eyes wide shut: The ambiguous "political activity" prohibition and its effects on 501(c)(3) organizations, Houston Business and Tax Journal, 2008, page 119 and 141, referenced February 16, 2012
  52. 1 2 3 Chick, Raymond; Henchey, Amy. "Political Organizations and IRC IRC 501(c)(4)" (PDF). Exempt Organizations-Technical Instruction Program for FY 1995. Internal Revenue Service.
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  55. ↑ "Political and Lobbying Activities". Irs.gov. 2009-01-06. Archived from the original on 7 May 2009. Retrieved 3 June 2014.
  56. 1 2 Berry, Jeffrey M. (November 30, 2003). "The Lobbying Law Is More Charitable Than They Think". The Washington Post. p. B1.
  57. ↑ "Form 5768: Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation (Under Section 501(h) of the Internal Revenue Code)" (PDF). Internal Revenue Service.
  58. ↑ Reg. 1.501(c)(4)-1(a)(2)(i)
  59. ↑ See 26 U.S.C. § 501(c)(4)(A).
  60. ↑ "Rev. Rul. 68-656, 1968-2 C.B. 216" (PDF). Internal Revenue Service.
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  62. 1 2 3 4 5 Matthews, Dylan (May 14, 2013). "Everything you need to know about the IRS scandal in one FAQ". The Washington Post.
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  68. ↑ "Donations to Section 501(c)(4) Organizations". 2012-08-14. Retrieved 31 October 2012.
  69. 1 2 Reilly, John Francis; Braig Allen, Barbara A. "Political Campaign and Lobbying Activities of IRC 501(c)(4), (c)(5), and (c)(6) Organizations" (PDF). Exempt Organizations-Technical Instruction Program for FY 2003. Internal Revenue Service.
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  73. ↑ Luo, Michael; Strom, Stephanie (September 20, 2010). "Donor Names Remain Secret as Rules Shift". New York Times.
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  75. ↑ Kim Barker (4 October 2012). "How Some Nonprofit Groups Funnel Dark Money Into Campaigns". ProPublica. Retrieved 30 May 2014.
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  77. ↑ Gershman, Jacob (May 16, 2013). "The Surprisingly Muddled History of the 501(c)(4) Exemption". The Wall Street Journal.
  78. 1 2 "Inurement and Benefits to Members - Agricultural/Horticultural and Labor Organizations (IRC 501(c)(5))". Internal Revenue Service. March 11, 2015.
  79. ↑ "Tariff Act of 1909, ch. 6, § 38, 36 Stat. 113". That every corporation, joint stock company or association... shall be subject to pay annually a special excise tax with respect to the carrying on or doing business by such corporation, joint stock company or association... Provided, however, That nothing in this section contained shall apply to labor, agricultural or horticultural organizations, or to fraternal beneficiary societies, orders, or associations operating under the lodge system, and providing for the payment of life, sick, accident, and other benefits to the members of such societies, orders, or associations, and dependents of such members, nor to domestic building and loan associations, organized and operated exclusively for the mutual benefit of their members, nor to any corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net income of which inures to the benefit of any private stockholder or individual.
  80. 1 2 3 Reilly, John Francis; Hull, Carter C.; Braig Allen, Barbara A. (2003). "IRC 501(c)(5) Organizations" (PDF). Exempt Organizations-Technical Instruction Program for FY 2003. Internal Revenue Service.
  81. ↑ Tariff Act of 1913, ch. 16, § 11(G), 38 Stat. 172.
  82. ↑ S. Rep. No. 94-938 at 419, 420, reprinted in 1976-3 C.B. (vol. 3) 457-458.
  83. ↑ Mike Allen; Jim Vandehei (11 September 2013). "The Koch brothers' secret bank". Politico. Retrieved 29 November 2013.
  84. ↑ Tariff Act of 1913, ch.16, § II (G)(a), 38 Stat. 72
  85. ↑ Rev. Act of 1928, ch. 852, § 103(7), 48 Stat. 700.
  86. ↑ Act of Nov. 8, 1966, Pub. L. 89- 800, § 6(a), 80 Stat. 1515.
  87. ↑ Reilly, John Francis; Hull, Carter C.; Braig Allen, Barbara (2003). "Exempt Organizations: Technical Instruction Program for FY 2003 IRC 501(c)(6) Organizations" (PDF). IRS. Retrieved 1 June 2014.
  88. ↑ H.R. Conf. Rept. No 2308, 89th Cong., 2d Sess. (1966), reprinted in 1966-2 C.B. 958, 963, 964.
  89. 1 2 Kang, Cecilia (September 17, 2014). "The real architect of NFL's big profits". The Washington Post. p. A12.
  90. 1 2 Kang, Cecilia (September 17, 2014). "How the government helps the NFL maintain its power and profitability". The Washington Post.

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