Boy this is going to get in the weeds and I will need a Fr-er CPA for some help on this. From what I have seen, some of these left leaning "orgs" have a 501(c)(3) component and a 501(c)(4) component. How they reconcile having these two camps under one roof is beyond me, but let that go.
So is this to prevent an internal swap of funds or an external donation to another "like" organization? I am thinking the latter.
Tangent to this is something I have said here before. The whole tax free bla-bla-bla rules and regs and whether they can talk politics or not is getting sooooo old, I want to end the whole 501(c)(3) thing, frankly I am sick of it and take the 501(c)(4)'s out with the trash that is in the tax code while you at it.
It’s a good point. There are so many 501C3 organizations, that a substantial amount of the economy pays no taxes.
I can’t explain the 501C4 vs C3 - it’s always seemed to be a conflict to me. I will say that when it was illegal for a bank to own another bank, the legal/accounting community came up with a corporation called a holding company. The holding company then acquired a number of banks that they called affiliates. Obviously to get around the law, but it was determined to be legal.
It’s like Clinton and the meaning of is. If I understand it, Soros groups will not be able to fund the legal challenges and throw a lot of sand in the works. It will have to be individuals or regular corporations.