501(c)(3) and 501(c)(4) Organizations

Certainly. 501(c)(3) organizations are nonprofit entities dedicated to charitable, religious, educational, scientific, or literary purposes. They are tax-exempt and can receive tax-deductible donations. Examples include charities and educational institutions. In contrast, 501(c)(4) organizations are also nonprofit but primarily focus on social welfare and advocacy—such as lobbying and community issues. They are tax-exempt but donations are generally not tax-deductible. While both types aim to benefit the public, 501(c)(3)s are restricted from political campaigning, whereas 501(c)(4)s can engage more in political activities within certain limits.