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Announcements: IRC 501(c)(4) 170(c)(3) guidelines


IRC 501(c)(4) 170(c)(3) guidelines 


IRC 501(c)(4) veterans’ organization must be organized as a not-for-profit organization and operated exclusively for social welfare purposes. Its primary activities must promote the common good and general welfare of the people of the community. Social welfare activities do not include social, political, or business activities. The net earnings of an IRC 501(c)(4) organization may not be used for private purposes or to benefit private individuals.

Exemption is based on activity not membership.

IRC 170(c)(3) provides an income tax deduction for contributions to a post of war veterans if it is organized in the United States or any of its possessions, and no part of its net earnings inures to the benefit of any private shareholder or individual.

A war veterans’ organization is one that satisfies both a

membership requirement and a purpose requirement. To

be eligible to receive tax deductible contributions under

IRC 170(c)(3), at least 90% of the members must be war veterans. Substantially all of the other members must be either veterans, cadets, or spouses, widows, or widowers of war veterans, veterans, or cadets. “War veterans” are defined as persons who have served in the United States Armed Forces during a period of war.

A war veterans’ organization must also be organized and operated primarily for the following purposes:

A. Furthering comradeship among persons who are or have been members of the Armed Forces,

B. Honoring the memory of deceased veterans and members of the Armed Forces and aiding and comforting their survivors,

C. Encouraging patriotism, and

D. Aiding hospitalized, disabled and needy war veterans and their dependents.

C. IRC 501(C)(4)

What type of records must be maintained to show the composition of membership?

There is no membership requirement for exemption under

IRC 501(c)(4). A post need only maintain a list of members and the category of membership (veteran, degree of relation, or non- veteran or non-relative) for its own use and to verify dues income.

If a post qualifies under IRC 170(c)(3) to receive tax deductible contributions, it must maintain a list of members, their dates of service, whether they are war veterans, have served in Vietnam, and if not, whether they are spouses, widows, or widowers of war veterans, veterans, or cadets.



Created at 10/11/2007 2:20 PM  by TN 86 Webmaster 
Last modified at 10/11/2007 2:25 PM  by TN 86 Webmaster 

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