Forming a 501(c)(4)

This week we are talking about 501(c)(4)s, or social welfare organizations. What are the advantages to starting one?  How are they different than 501(c)(3)s and other types of nonprofits? And what are the important considerations when determining if a 501(c)(4) would be a good vehicle to use to conduct the types of activities you are hoping to engage in to achieve your mission? If you are curious about 501(c)(4)s, what they can do, and how they operate... this podcast episode is for you.

Attorneys for this Episode

Natalie Ossenfort

Susan Finkle Sourlis

Quyen Tu

Shownotes

Scenario:

·      Existing 501(c)(3) has a mission focused on providing potable water to the residents of a community, who are currently unable to tap into a reliable water supply.

·      The city, county, and state have failed to step up, so the 501(c)(3)'s staff raise funds for bottled water that they deliver to the community.

·      What the organization's founders thought would be a temporary fix, has now been operational for several years, and the water situation is not improving.

·      The 501(c)(3)'s founders want to do more to address the needs of the community, and some are considering starting an affiliated 501(c)(4).

General Rules & Characteristics for 501(c)(3)s: