Bolder Advocacy

Change is possible when policymakers are engaged and supportive. 501(c)(4) nonprofits are powerful agents to create social change and achieve policy goals because they can use a broader range of advocacy actions than can 501(c)(3) organizations. A 501(c)(4) can engage in unlimited amounts of lobbying activity and some partisan political activity — which gives them the ability to hold elected officials accountable in their legislative roles and at the ballot box. Put simply, a 501(c)(4)’s ability to engage in partisan work can help to put the right people in office and support them once they get there.

Of course, 501(c)(4)s are not without disadvantages, and a key one is that it is often harder to fundraise to support their activities. A 501(c)(4) cannot receive tax deductible charitable contributions which can make it more difficult to raise funds from individuals. Additionally, private foundations must follow a specific grant-making process called expenditure responsibility when providing grant funds to 501(c)(4)s because they are not public charities. For this reason, private foundations have historically preferred to limit their grantmaking to 501(c)(3) public charities to avoid navigating these more onerous rules.