June 12, 2008 | Read Time: 1 minute
Q. Our corporate foundation sometimes gets grant requests from charities that fall under sections 501(c)(4) or 501(c)(6) of the Internal Revenue Service code. Doesn’t that mean they can lobby? We only give money to 501(c)(3) organizations, but would welcome an understanding of the other IRS designations for nonprofit groups.
A. Section 501(c) includes many different types of groups, such as 501(c)(4), which are civic leagues and advocacy organizations and 501(c)(6), which covers trade associations. The most common of the tax-exempt groups registered with the IRS are 501(c)(3) groups, which are religious or charitable organizations, some of which actually can lobby on a limited basis. Both 501(c)(4) and 501(c)(6) groups may engage in lobbying with less restriction.
For a more complete explanation, including the ways that 501(c)(3) groups may engage in lobbying, see the IRS Publication 557, “Tax-Exempt Status for Your Organization,” available for download from the IRS Web site.
