| | §501(c)(3) | §501(c)(4) | §527 PAC | §527 Party |
|
| Deductibility of contributions to the donor |
Deductible up to 50% of adjusted gross income, depending |
Not deductible |
No federal deduction (some states provide for limited deductions) |
No federal deduction (some states provide for limited deductions) |
|
| Limits on contributions received from any single donor (FEC) |
No limit |
No limit |
$5,000 |
$30,400 per party committee; $10,000 to each state or local party committee |
|
| Membership fees & dues |
Not taxed |
Not taxed |
Not taxed |
Not taxed |
|
| Revenue from sales and fees for exempt purposes |
Not taxed, no limit |
Not taxed, no limit |
Sporadic sales of campaign materials not taxed; any ongoing trade or business is taxed |
Sporadic sales of campaign materials not taxed; any ongoing trade or business is taxed |
|
| Investment income |
Not taxed |
Not taxed |
Taxable |
Taxable |
|
| Unrelated (taxable) income |
Any unrelated trade or business |
Any unrelated trade or business |
Any trade or business |
Any trade or business |
|
| Tax rate |
15-35% (standard corporate tax rates) |
15-35% (standard corporate tax rates) |
35% (highest corporate tax rate) |
35% (highest corporate tax rate); except for principal campaign committees (standard rates) |
|
| Lobbying expenditures |
Must be insubstantial (5% - 20% based on exempt purpose spending) |
May engage in substantial lobbying activity |
No direct lobbying. Grassroots lobbying is OK only in relation to a candidate & must be insubstantial. Though permitted, lobbying expenditures are taxed. |
No direct lobbying. Grassroots lobbying is OK only in relation to a candidate & must be insubstantial. Though permitted, lobbying expenditures are taxed. |
|
| Campaigning expenditures |
Prohibited |
Permitted but taxed |
Required |
Required |
|
| Private benefit expenditures |
25% to 200% penalty on recipient; 10% penalty up to $10,000 on management |
25% to 200% penalty on recipient; 10% penalty up to $10,000 on management |
Personal payments are gross income to the recipient and taxed to the org. |
Personal payments are gross income to the recipient and taxed to the org. |
|
