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NOTE: 501(c)(4) organizations are tax exempt, however, unlike a 501(c)(3), contributions to these organizations are not tax deductible as charitable contributions. Businesses may be able to receive a business deduction in certain limited circumstances. Additionally, while contributions to public charities and political organizations are not subject to gift tax, donations by individuals to a 501(c)(4) in excess of $13,000 are not explicitly excluded. Although there has been uncertainty about the application of the gift tax donations to 501(c)(4) organizations, the Internal Revenue Service announced in 2011 it is closing all gift-tax examinations of taxpayers who contributed to a 501(c)(4) and, while it studies the gift-tax issue, it will not open new examinations of gifts to 501(c)(4) organizations.
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