http://www.outsidethebeltway.com/501c4-vs-501c3-vs-527/
While all of these organizations, the 501(c)3, the 501(c)4, and the 527, are tax-exempt, each is bound by different rules. Here are the most important differences to understand for the current situation:
| Characteristics | 501(c)3 | 501(c)4 | 527 |
|
Ability to engage in politics |
Not supposed to engage in any political activities, though some voter registration activities are permitted | May engage in political activities, as long as these activities do not become their primary purpose | Politics is what 527s are *required* to do |
|
Endorsing Candidates |
CANNOT Endorse Candidates | CAN Endorse Candidates | CAN Endorse AND Field Candidates |
|
Campaign Spending |
Prohibited | Permitted but taxed | Required |
|
Lobbying |
Some lobbying | Substantial lobbying | No direct lobbying |
|
General Political Advocacy (not related to legislation or the election of candidates.) |
Yes, as an educational activity.) | Yes, provided it is not the primary activity of the organization | Yes |
|
Contributions |
Able to accept unlimited, tax-deductible donations | Able to accept unlimited, non tax-deductible donations | Able to accept limited (based on FEC regulations), non tax- deductible donations. |
|
Donor Reporting |
Donors kept anonymous. | Donors kept anonymous. | Donors are publicly reported. |
|
Must apply with the IRS |
YES | NO | YES |
