1. #1
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    Default 501c3 vs 501c4 "cliffs notes"

    Both can participate in "fund raisers" and receive donations and not have to pay the IRS taxes on the income.

    However, those who donate funds to a 501c3 can "write off" the funds on their income, whether it be a business or personal income. Donations to a 501c4 can not be written off. This is why companies such as Motorola and Walmart only give to 501c3 organizations. They need to be able to write off that part of their income and not pay taxes on it.

    Why the difference you ask? Why set up a 501c4 instead of a 501c3?

    Because 501c4 organizations can participate in political processes such as lobbying... 501c3 organizations cannot.

    Wolf

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    Quote Originally Posted by Wolf8552 View Post
    Both can participate in "fund raisers" and receive donations and not have to pay the IRS taxes on the income.

    However, those who donate funds to a 501c3 can "write off" the funds on their income, whether it be a business or personal income. Donations to a 501c4 can not be written off. This is why companies such as Motorola and Walmart only give to 501c3 organizations. They need to be able to write off that part of their income and not pay taxes on it.

    Why the difference you ask? Why set up a 501c4 instead of a 501c3?

    Because 501c4 organizations can participate in political processes such as lobbying... 501c3 organizations cannot.

    Wolf
    Correct, BUT there are other reasons that one would have to be a C4 instead of a C3 - such as a subscription VFD that does NOT respond to calls from non-members.

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    Also C4s can be used for personal items like gifts and xmas parties while C3s are strictly for fire dept. use.
    Ed

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