IRS Section 501(c)(4) Status

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The 501(c)(4) is another IRS tax designation that is permissible under the HOME Program. This tax exemption is for organizations operated exclusively for the promotion of social welfare.

	Like 501(c)(3) organizations, these organizations do not pay tax on income, except for certain unrelated business activities.
	Unlike 501(c)(3) organizations, 501(c)(4) organizations may:

	Engage in substantial lobbying activities;
	Exercise greater latitude to serve individuals who are not low-income or minority as long as the activity serves the common good and general welfare.

However,501(c)(4) organizations may not offer tax deductions to donors for their contributions.