501(c)4

501(c)4

A subsection of the Internal Revenue Code governing the status of non-profit organizations devoted to lobbying for political, civic, or other, similar causes. 501(c)4 organizations are exempt from federal taxation. However, contributions and donations made to them are not tax exempt. Examples of 501(c)4 organizations include political campaigns and groups that advocate for certain issues. In order to qualify for 501(c)4 status, all of the organization's earnings must be used for social welfare purposes.