A 501(c)(4) “social welfare” organization is a type of nonprofit group recognized by the Internal Revenue Service (IRS) under section 501(c)(4) of the U.S. tax code. These organizations are meant to promote social welfare, but they are also allowed to engage in a limited amount of political activity.
Here’s a breakdown of what that means:
🔹 Purpose
A 501(c)(4) must be primarily engaged in promoting social welfare — that is, activities that benefit the community as a whole.
Examples include:
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Advocating for civil rights or environmental protection
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Promoting community safety or public health
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Educating the public on policy issues
🔹 Political Activity
Unlike charitable nonprofits (501(c)(3) organizations), 501(c)(4)s can engage in political campaigning and lobbying, as long as those activities are not their primary purpose.
They can:
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Lobby lawmakers for or against legislation
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Support or oppose candidates indirectly (through issue advocacy)
However, direct political campaigning (explicitly urging votes for or against a candidate) cannot be their main activity.
🔹 Donations and Disclosure
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Donations are not tax-deductible for donors (unlike 501(c)(3) charities).
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501(c)(4)s do not have to publicly disclose their donors, which has led critics to refer to some as sources of “dark money” in politics.
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They must report financial activities to the IRS on Form 990, but donor names are usually kept confidential.
🔹 Examples
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The National Rifle Association (NRA) operates a 501(c)(4) branch called NRA Institute for Legislative Action.
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AARP (American Association of Retired Persons) is a 501(c)(4) that advocates for older Americans’ interests.
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Planned Parenthood Action Fund is another 501(c)(4) focused on reproductive rights advocacy.
