To be tax-exempt under section 501(c)(3) (click here) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates....
The difference is incredible. A good real world example is "Sierra Club." The primary purpose is for it's members to enjoy the natural world. But, in a world where real estate includes the natural world there is a chronic fight to keep it wild. Therefore, "Sierra Club" is actually two separate organizations. They have a 501(c)3 and (c)4. Each operates autonomously and they do not share monies. If a member donates to the 501(c)3 of Sierra Club they can be reassured they will be protecting activities that support enjoyment and land use. If members are interested in promoting certain programs and need legal leverage to maintain those programs, then donations to the Sierra Club 501(c)4 accepts those monies and applies them to activities of lobbying.
...Seeking legislation germane (click here) to the organization's programs is a permissible means of attaining social welfare purposes. Thus, a section 501(c)(4) social welfare organization may further its exempt purposes through lobbying as its primary activity without jeopardizing its exempt status. An organization that has lost its section 501(c)(3) status due to substantial attempts to influence legislation may not thereafter qualify as a section 501(c)(4) organization. In addition, a section 501(c)(4) organization that engages in lobbying may be required to either provide notice to its members regarding the percentage of dues paid that are applicable to lobbying activities or pay a proxy tax.....
The donations of a 501(c)3 are completely deductible to the member or organization that contributes, but, that is not the case with the 501(c)4 which is primarily used to lobby. That is why the organizations claiming to be (c)3 rather than (c)4 needs to be investigated for tax fraud as well as their donors. Donors should know they are donating for lobbying rather than organizational goals, especially if it is calling itself a Social Welfare organization.
Therefore, Steven Laws and all those other bozos that apply the law wrongly, need to be charged and prosecuted AND they and their donors need to pay more taxes to the USA Treasury.
The Brennan Center (click here)Citizens United created loopholes in campaign disclosure rules that have made so-called dark money — funds from groups that do not disclose their donors — disturbingly common. Powerful groups have poured more than $1 billion into federal elections since 2010, typically concentrating on the most competitive races. Dark money continues to seep into executive, legislative, and even judicial elections, threatening the impartiality of state supreme courts across the country. Without transparency, voters don’t know who is trying to influence them, making it harder for them to reach informed decisions.
The Brennan Center publishes extensive research on the effects of dark money in politics, including its effects in state and local elections, risks to judicial independence, and the threat of foreign funds in U.S. elections. The center has proposed reforms to the Federal Elections Committee that would help the agency better enforce the law and improve campaign spending transparency....
