Social welfare organizations are exempt under section 501(c)(4) of the Internal Revenue Code. Social welfare organizations generally fall into one of the following categories:

• Organizations that may be performing some type of public or community benefit but whose principal feature is lack of private benefit or profit;
• Organizations that would qualify for exemption under section 501(c)(3) but for a defect in their organizing documents or if they were not “action organizations”; and
• Nonprofit organizations that traditionally have been labeled in common parlance as social welfare organizations.

During its existence, a social welfare organization has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status, to filing the required annual information returns, to making changes in its mission and purpose. The IRS provides information, explanations, guides, forms and publications on all of these subjects – they are available through this IRS Web site or through the following links:

Starting Out

• Creating the Organization
  • Organizing Documents
  • Bylaws
• Employer Identification Number
  • Application Form
  • Online EIN Application
• Types of 501(c)(4) Organizations
  • Social Welfare Organizations
    • Examples of social welfare organizations
  • Employee Associations
• “Social Welfare” Defined

Applying to the IRS

• Application Forms
  • Exemption Application (Form 1024)
    • Group exemptions
  • User Fee
  • Power of Attorney
  • Disclosure of Applications
• Help from the IRS
  • Application Process Step by Step
  • Customer Account Services
  • Publication 557, Tax-Exempt Status for Your Organization
• IRS Processing
  • While You Wait
  • Rulings and Determination Letters
  • Advance Rulings

Required Filings

• Annual Exempt Organization Return
  • Requirements for Filing
  • Power of Attorney
• Unrelated Business Income Tax
  • Requirements for Filing
    • Form 990-T
    • Form 990-T instructions
    • Form 990-W
    • Estimated tax
  • Exceptions and Exclusions
• Employment Taxes
• Help from the IRS
  • Customer Account Services
  • Publication 598, Tax on Unrelated Business Income for Exempt Organizations
  • Publication 557, Tax-Exempt Status for Your Organization
  • Publication 4221-NC, Compliance Guide for Tax-Exempt Organizations (other than 501(c)(3) Public Charities and Private Foundations)

Ongoing Compliance

• Jeopardizing Exemption
  • “Exclusive” Operation Requirement
  • Business Activities and Social Welfare
  • Inurement/Intermediate Sanctions
  • Political Campaign Activity
  • Private Benefit/Benefit to Members
  • Social Activity
• Employment Taxes
  • Requirements to Pay
  • Exceptions and Exclusions
  • Worker Classification
  • Forms and Publications
• Retirement Plan Compliance
• Contributions
• Disclosure
  • Dues Expended for Lobbying or Political Campaigns
• Help from the IRS
  • Customer Account Services
  • Publication 557, Tax-Exempt Status for Your Organization
  • Publication 4221-NC, Compliance Guide for Tax-Exempt Organizations (other than 501(c)(3) Public Charities and Private Foundations)

Significant Events

• Reporting Changes
  • Termination of Exempt Organization
• Private Letter Rulings and Determination Letters
• Audits of Exempt Organizations
  • Potential Examination Consequences
  • Examination Procedures
  • Power of Attorney
• Termination of an Exempt Organization
• Help from the IRS
  • Customer Account Services
  • Publication 557, Tax-Exempt Status for Your Organization
  • Publication 4221-NC, Compliance Guide for Tax-Exempt Organizations (other than 501(c)(3) Public Charities and Private Foundations)