Nonprofit Law Podcast #5: The different flavors of nonprofits

The different flavors of nonprofits

Download: Nonprofit Law Podcast #5 (mp3, 07:40)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Common characteristics

All are tax exempt
All have some kind of legal form in a state
These are federal tax law designations (numbers correspond to the tax code)

Public charities – 501(c)(3)

Support “charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the preventing cruelty to children or animals.”
Have a certain level of public support (many small contributors… this is a future show!)
Donors get tax deductions
No support or opposition to candidates (future show)
Limited lobbying (future show)

i.e. Red Cross, American Cancer Society, etc.

Private foundations – 501(c)(3)

Same as a public charity, but they get their money from a limited source (can’t show public support)
i.e. Bill and Melinda Gates Foundation, Ford Foundation, etc.

Social Welfare – 501(c)(4)

Donors do not get tax deductions
Unlimited lobbying… tend to be advocacy groups
Limited election work (secondary activity)
i.e. Sierra Club, …

Unions and Labor Organizations – 501(c)(5) and Trade Associations – 501(c)(6)

Same rules as 501(c)(4)s

Political Organizations – 527s

PACs, political parties, formerly “Stealth PACs”
All activity goes towards the election or defeat of a candidate or ballot measure
VERY complicated because of the overlay with state or federal election laws
If you wade in this thicket, make sure you have a lawyer advising you!

Resources

AFJ – The Connection
IRS - Nonprofit index

Closing

Email me with questions and suggested topics
AP audio & written guides coming soon
Need more than a podcast? Tim-Mooney.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.