Political parties; campaign committees for candidates for federal, state or local office; and political action committees are all political organizations subject to tax under IRC section 527. Section 527 organizations are generally required to file one or more of the following: Annual income tax returns and.

Tactics for raising money may include direct mail solicitation, attempts to encourage supporters to contribute via the Internet, direct solicitation from the candidate, and events specifically for the purpose of fundraising, or other activities.

Funding. Major donors to the Center for Responsive Politics include the Sunlight Foundation, The Pew Charitable Trusts, the Carnegie Corporation of New York, Open Society Foundations, the Joyce Foundation, and the Ford Foundation.

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.

Thus, an organization exempt under IRC 501(c)(4) may engage in political campaign activities if those activities are not the organization’s primary activity.

What Is a 501(C)(3) Organization? Section 501(c)(3) is a portion of the U.S. Internal Revenue Code (IRC) and a specific tax category for nonprofit organizations. Organizations that meet the requirements of Section 501(c)(3) are exempt from federal income tax.

AMERICAN LEGION, fiscal year ending Dec. 2018

The Different Types of Nonprofit Organizations In The United States

• Section 501(c)(4): civic leagues and social welfare organizations, homeowners associations, and volunteer fire companies.
• Section 501(c)(5): such as labor unions.
• Section 501(c)(6): such as chambers of commerce.

Charities do not pay tax on most types of income as long as they use the money for charitable purposes. You can claim back tax that’s been deducted, for example on bank interest and donations (this is known as Gift Aid).

First, there is the required IRS Form 1023 User Fee, which is now $600 (as of March, 2018) regardless of your organization’s projected future income. This User Fee payment is non-refundable. Second, there is the cost of hiring an experienced advisor or professional to prepare your 501c3 application.

While a nonprofit organization itself cannot earn a taxable profit, the people who run it can receive a taxable salary. All nonprofits have administrative costs, which include not only expenses like paying rent and utilities, but also compensating the staff that runs the organization.