- A majority of GCSAA-affiliated
chapters are designated as 501c6 or 501c3 organizations. A section 501c6 covers
professional membership and trade organizations. Contributions made to 501c6
organizations are not deductible as charitable contributions.
- A section
501c3 covers charitable, education and scientific organizations. Dues paid to
501c3 organizations may be deductible as a business expense, except to the
extent they support certain political or lobbying activities.
- All nonprofits must file a Form 990 return, no matter what their size, level of assets or gross receipts. To learn more about the IRS requirements, visit the irs.gov website.
- Unrelated business income tax (UBIT) – Activities unrelated
to the chapter’s purpose or mission are regularly carried on and are considered
a trade or business, according to the IRS. This may result in unrelated business
income tax (UBIT) by the IRS. If unrelated revenues subject to UBIT rise within
30-40 percent of the chapter’s annual budget, the IRS may question the chapter’s
Lobbying and political activity allowances
Please refer to this chart for lobbying practices allowed by tax-exempt organizations:
|Type of organization ||Definition ||Lobbying Activities |
|501c6 ||Trade, professional membership and business leagues ||Unlimited |
|501c3 ||Charitable, scientific, educational or religious organizations ||Limited – It cannot be substantial, and cannot be related to directly or indirectly supporting a political campaign, candidate or political action committee (PAC) |
|501c4 || || |
|501c5 || || |
Sources: Managing Chapter Funds by Susan S. Vowell, CPA,
Professional Practices in Association Management by John B. Cox, CAE and
Association Law Handbook Third Edition by Jerald A. Jacobs.