If you need help filing for IRS 501(c)(3) status, we’d love to help! You can fill out our contact form at bit.ly/3i6rFxz or give us a call at 888-361-9445.
THANK YOU SOOOO MUCH FOR SHARING VALUABLE INFORMATION FROM YOUR YEARS OF KNOWLEDGE AND EXPERIENCE. THANK YOU, THANK YOU, THANK YOU FOR SUCH CLEAR DETAILS AND INFORMATIONAL VIDEOS.
I want to establish a family bank. The point is to lend money to the members for education, housing and vehicle purchases. I was thinking 501c4. Is there a better option?
Hi, Wendi. We don't endorse any particular insurance company for this. Here's a site that compares different options. We would recommend reviewing several comparison sites like this. You can find them with a simple Google search. www.thebalancesmb.com/best-d-and-o-insurance-5115733
Multiple entities. PP is a 501(c)(3), but they also have a 501(c)(4) lobbying arm. Not uncommon with advocacy groups, no matter which side of the spectrum they reside on.
So, a 501c4 is expressly forbidden from donating directly to candidates; they therefore require the creation of a separate PAC to do so, is that correct?
It's really more than that. A 501(c)(4) can donate to a candidate's campaign, so long as it's not substantial. The Federal Election Campaign Act, or FECA, sets the limits. If the donations are too substantial, or there is other ongoing interaction, the Federal Election Commission may determine that the entities are, in fact, coordinating with each other, which is not allowed. The 501(c)(4) can endorse the candidate, and even produce content promoting that same candidate. But coordination is prohibited. Confusing, I know. And somewhat subjective, as well.
Can an institution working to proctor student exams for a fee be a non-profit as it is helping the distance learning and local community to take their exams easily. thanks.
From what you describe, we would probably say, "No", to that. It's a fee-for-service arrangement with no real distinction from a commercial business. You may be facilitating education, as you suggest, but that's indirect at best. Fee for service nonprofits must have mission accomplishment be the direct result of the service being sold to not be considered a commercial-equivalent activity.
Paying employees is a legitimate expense for any nonprofit, whether it's a 501c3 or 501c4, or even something else. As long as the position is deemed necessary by the leadership and the payrate is reasonable, then yes, you can use funds raised to pay salaries. You had also asked about types of employees. There's no set answer on that. It's the same as it would be for any business or nonprofit, that is whatever positions you deem necessary. Maybe an Executive Director/CEO, administrative positions, etc.
I am looking to apply for tax exemption to raise money to buy materials and pay for insurance to build local pantries in public city parks. Is this a 501c4 or 501c3?
If you need help filing for IRS 501(c)(3) status, we’d love to help! You can fill out our contact form at bit.ly/3i6rFxz or give us a call at 888-361-9445.
I spent hours on the IRS site trying to figure out whether to go 3 or 4 for a political organization. This one video summed it up in 8 minutes.
Glad the video helped, Casey! If you need assistance setting it all up, give us a shout.
I’m part of a dads club and a 501c4 seems like the best fit for us as we raise funds for to distribute to our local school for unbudgeted items.
Outstanding video and so helpful.
THANK YOU SOOOO MUCH FOR SHARING VALUABLE INFORMATION FROM YOUR YEARS OF KNOWLEDGE AND EXPERIENCE. THANK YOU, THANK YOU, THANK YOU FOR SUCH CLEAR DETAILS AND INFORMATIONAL VIDEOS.
Hey Greg, Awesome 👍 video, very educational. You should have mentioned there is NO public support test.
Great point!
You make great content keep it up!
Thanks, will do!
fabulous
I want to establish a family bank. The point is to lend money to the members for education, housing and vehicle purchases. I was thinking 501c4. Is there a better option?
Do y'all provide in-house training? I would pay to attend training at your office.
Are 501(c)4 organizations required to submit finance reports to the Secretary of State or boards of elections for issue or candidate donations?
Where can one get D&O insurance for a 501(c)4, for its Directors and Officers?
Hi, Wendi. We don't endorse any particular insurance company for this. Here's a site that compares different options. We would recommend reviewing several comparison sites like this. You can find them with a simple Google search. www.thebalancesmb.com/best-d-and-o-insurance-5115733
GREAT QUESTION, THANK YOU FOR ASKING.
What type of employee are in a 501c4 what are common salaries
Whoa there… what about Planned Parenthood?
Multiple entities. PP is a 501(c)(3), but they also have a 501(c)(4) lobbying arm. Not uncommon with advocacy groups, no matter which side of the spectrum they reside on.
So, a 501c4 is expressly forbidden from donating directly to candidates; they therefore require the creation of a separate PAC to do so, is that correct?
It's really more than that. A 501(c)(4) can donate to a candidate's campaign, so long as it's not substantial. The Federal Election Campaign Act, or FECA, sets the limits. If the donations are too substantial, or there is other ongoing interaction, the Federal Election Commission may determine that the entities are, in fact, coordinating with each other, which is not allowed. The 501(c)(4) can endorse the candidate, and even produce content promoting that same candidate. But coordination is prohibited. Confusing, I know. And somewhat subjective, as well.
501c(4)=FREEDOM
Can an institution working to proctor student exams for a fee be a non-profit as it is helping the distance learning and local community to take their exams easily. thanks.
From what you describe, we would probably say, "No", to that. It's a fee-for-service arrangement with no real distinction from a commercial business. You may be facilitating education, as you suggest, but that's indirect at best. Fee for service nonprofits must have mission accomplishment be the direct result of the service being sold to not be considered a commercial-equivalent activity.
How do 501c4 pay employee s do tether to reserve some of the funds raised for that purpose
Paying employees is a legitimate expense for any nonprofit, whether it's a 501c3 or 501c4, or even something else. As long as the position is deemed necessary by the leadership and the payrate is reasonable, then yes, you can use funds raised to pay salaries. You had also asked about types of employees. There's no set answer on that. It's the same as it would be for any business or nonprofit, that is whatever positions you deem necessary. Maybe an Executive Director/CEO, administrative positions, etc.
I am looking to apply for tax exemption to raise money to buy materials and pay for insurance to build local pantries in public city parks. Is this a 501c4 or 501c3?
Hard to say without more info. However, if the pantries are to help needy people, you might very well qualify for 501c3.