The law approved by Congress for 501(c)4 status states in section 26 U.S.C. Sec. 501(c)(4) that "Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted EXCLUSIVELY to charitable, educational, or recreational purposes' are exempt from taxation."
Many organizations currently granted 501(c)4 status are involved in the political process.
They should be designated as 527 organizations under IRS law, and as such, would be required to list their donors and the amount donated.
IRS officials should review these and reclassify them to 527.



