End all tax breaks for a 501(c)(4) social welfare organizations that engage in ANY political campaigns, as the tax law was originally written.
Why is this important?
A 501(C)(4) is supposed to be for “civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare.” Note the word “exclusively.” If the organization is not 100% social welfare, it should not be exempt from taxes. Tax law exempts Section 501(c)(3) charities and Section 527 political committees from gift tax rules,but offers no such exemption to Section 501(c)(4) social welfare organizations. Political groups are flouting the law.
Such groups as Sierra Club and League of Women voters do not claim such exemptions, and donations are not tax-exempt.
