๐ Topic Summary
501(c)(4) organizations are non-profit groups that are exempt from federal income tax under section 501(c)(4) of the Internal Revenue Code. Unlike 501(c)(3) organizations, they are permitted to engage in political activities, as long as such activities are not their primary purpose. This means they can lobby, advocate for specific policies, and engage in some electioneering, but their political activities cannot be their main focus. They often operate as "social welfare" organizations, working on issues that benefit the community, while also influencing policy debates.
For AP Gov, understanding 501(c)(4)s is crucial because they represent a significant pathway for interest groups and other entities to participate in politics, often without the same disclosure requirements as traditional political committees. This can make it challenging to track the source of funding and influence in political campaigns and policy discussions.
๐ง Part A: Vocabulary
Match the term with the correct definition:
| Term |
Definition |
| 1. 501(c)(4) |
a. Activities aimed at influencing the outcome of an election. |
| 2. Political Activity |
b. Contacting public officials to advocate for or against legislation. |
| 3. Lobbying |
c. An organization exempt from federal income tax that can engage in political activities as long as it's not their primary purpose. |
| 4. Social Welfare |
d. The requirement for organizations to report their donors. |
| 5. Disclosure |
e. Efforts to improve the well-being of a community or society. |
๐ Part B: Fill in the Blanks
501(c)(4) organizations can participate in ________ activity, but it cannot be their ________ purpose. They are often called ________ ________ organizations and work on issues to benefit the ________. Unlike 501(c)(3)s, they have more ________ in terms of political involvement.
๐ค Part C: Critical Thinking
Do you think 501(c)(4) organizations have a positive or negative impact on American politics? Explain your reasoning, considering both potential benefits and drawbacks.
