|
501(c)(3) |
501(c)(4) |
501(c)(6) |
501(c)(7) |
| Organizational requirement |
No requirement (or less stringent) |
No requirement (or less stringent) |
No requirement (or less stringent) |
| Assets must be dedicated to charitable purposes |
No requirement to dedicate assets |
No requirement to dedicate assets |
No requirement to dedicate assets |
| Social activities must be insubstantial |
Social activity may be anything less than "primary" |
Social activity may be anything less than "primary" |
Social activity must be primary; other activities must be less than
primary |
| Legislative activity must be insubstantial, or <20% if election
made |
No limit on legislative activity as long as it furthers the exempt
purpose |
No limit on legislative activity as long as it furthers the exempt
purpose; legislative expenditures may limit the deductibility of
dues |
No limit on legislative activity as long as it furthers the exempt
purpose |
| Absolute prohibition against political activity |
Political activity permitted, but taxed |
Political activity permitted, but taxed |
Political activity permitted, but taxed |
| Must serve public purposes |
Can serve community purposes, can be somewhat narrower than
(c)(3) |
Can serve the business purposes of the members |
Serves the social and recreation purposes of members |
| Donations are deductible as charitable contributions by donors on
their tax returns |
Donations not deductible as charitable contributions - businesses
sometimes deduct as advertising |
Donations not deductible as charitable contributions - businesses
sometimes deduct as advertising; dues may be deductible as business
expense |
Donations not deductible as charitable contributions |
| Eligible for low cost non-profit bulk mailing permit |
Not eligible for lowest bulk mail rates |
Not eligible for lowest bulk mail rates |
Not eligible for lowest bulk mail rates |
| Must take care to generate enough public support to avoid
classification as a private foundation |
Not an issue under (c)(4) |
Not an issue under (c)(6) |
Not an issue under (c)(7) |
| Exempt from Federal income tax unless the organization has
unrelated business income |
Exempt from Federal income tax unless the organization has
unrelated business income |
Exempt from Federal income tax unless the organization has
unrelated business income |
Exempt from Federal income tax on income derived from members;
other income taxed |
