The differences between these two non-profit entities are significant even if they are slight. for more details about the activities described below. A 501(c)(4) organization is a “social welfare organization.” How is this different from 501(c)(3)? In other words, they don't get taxed on donations. Even though 501(c)(4) organizations can self-declare their tax-exempt status, your social welfare nonprofit can also seek formal recognition of its tax-exempt status by submitting Form 1024-A to the IRS. Homeowners' associations and volunteer fire departments may operate as a 501(c)(4). A 501(c)(4) is sometimes referred to as a social welfare organization. Your gifts to 501(c)(3) organizations -- treated by the Internal Revenue Service as charities -- not only are exempt from federal income taxes, they also are tax deductible for you. Together, nowplayingutah.com, Utah Cultural Alliance, and Utahns for Culture are three affiliated organizations serving the humanities and arts of Utah. 501c4 vs. 501c3. A nonprofit organization with a tax-exempt status is not required to pay corporate tax on income that comes from activities that are sufficiently related to its purposes. It is common for member associations like ourselves to have both 501c4 and 501c3 programming to better serve it's constituency. However, 501(c)(4)s can also endorse specific candidates – one of the most substantial differences between the two. Many people often wonder what the difference is between a 501(c)(3) and a 501(c)(4) organization. 501(c)(3) and 501(c)(4) are classes of non-profit organizations that enjoy tax-exempt status. 501(c)(4) This is where it gets tricky — trying to navigate the nuances of these code sections. There is a common misconception that a tax-exempt nonprofit organization is a 501(c) or 501(c)(3) organization. This is what most people mean when talking about a nonprofit. Form 1024-A comes paired with an attached Form 8718 (the User Fee for Exempt Organization Determination Letter Request) and a filing fee of $600. A 501(c)(4) is exempt from most federal, state and local taxes. The Difference Between a Nonprofit Corporation & a 501(c)(3). and The Rules of the Game, A Guide to Election-Related Activities for 501(c)(3) Organizations, 2 nd Ed. A nonprofit corporation is a state entity that does not automatically come with a federal tax exemption. The king of the nonprofit world is the 501(c)(3) public charity. A nonprofit organization under the 501C(3) is one that is for charitable purposes and is exempt based on this Section of the Internal Revenue Service Code, and the 501C(4) is granted to non-profit organizations that are operated for social welfare. Like a 501(c)(3), they must be operated on a nonprofit basis and must not benefit any specific individual. 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