Get Connected: The Top 5 Reasons to Read “The Connection: Strategies for Creating and Operating 501(c)(3)s, 501(c)(4)s, and Political Organizations - Alliance for Justice

Get Connected: The Top 5 Reasons to Read “The Connection: Strategies for Creating and Operating 501(c)(3)s, 501(c)(4)s, and Political Organizations


Leslie Barnes

Nonprofits play a pivotal role in shaping policy. But did you know they also have the right to engage with lawmakers, voters and candidates even in an election year?

Below are 5 reasons to download your copy of “The Connection” today:

Learn how charities, social welfare organizations, unions, and trade associations can work together in coalitions.

Explore the different types of nonprofits and learn the degree to which each type can engage in advocacy, even in an election year.  Foundations and public charities can legally fund voter registration drives, candidate debates & questionnaires, and even have a hand in shaping political party platforms, all while advancing their tax-exempt mission — but not intervening in the support or opposition of candidates for public office. The Connection helps nonprofits working in coalitions navigate federal tax and election laws so that they can engage in public dialogue on policy issues and improve democracy.

Learn permissible election-year activities for 501(c)(4)s, 501(c)(5)s, and 501(c)(6)s, including endorsement of candidates.

While public charities need to steer clear of supporting or opposing a candidate for public office, their cousins, social welfare organizations, unions and trade associations, can endorse candidates and engage in political activity, provided it’s not their primary purpose. Learn how to avoid paying a tax on political activity. Explore how and when these nonprofits can coordinate their activity with candidates and when they must act independently.

Learn how a 501(c)(3) can create and operate an affiliated 501(c)(4) organization and even share employees and resources.

The Connection explains how a 501(c)(4) can raise funds using a 501(c)(3)’s membership list and how affiliated organizations can share a website or when it is preferable to link to each other’s separate websites. Find out how affiliated organizations can share employees, office space, and equipment as well as save on payroll taxes. Discover when you can save some highly compensated employees from having to pay double social security taxes by having a common paymaster, and when it’s best to use an authorized payroll agent. Also included is an explanation of how a c3 can safely grant money to its affiliated c4 along with sample grant agreements and resource sharing agreements.

Learn how a 501(c)(4), 501(c)(5) or 501(c)(6) can create and operate a political action committee.

A political action committee organized as a separate segregated fund (SSF) can engage in political activities that other c4, c5, or c6 organizations cannot undertake, such as contributing directly to candidates. Readers will learn the basic rules to start an SSF, when to register the SSF with the Federal Election Commission and when to register with the Internal Revenue Service instead, accounting and reporting responsibilities and fundraising rules. Understand how some nonprofits can pay for the administrative and fundraising expenses of certain political action committees as well as share employees, officers, and resources.

Learn how to establish and operate a Super PAC (independent expenditure only PAC).

While corporations and unions are still prohibited from contributing directly to candidates, they can make contributions to Super PACs from their general treasury. Learn when to register a Super PAC with the Federal Election Commission and how to report receipts and disbursements. While Super PACs may only make independent expenditures in federal races, they can contribute directly to state and local candidates, pursuant to state laws.

The Fourth Edition of “The Connection” also contains the new form 501(c)(4)s must file with the IRS, court case updates, and new sample grant and cost sharing agreements.

Download your free copy today.