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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29795
Experience:  Taxes, Immigration, Labor Relations
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can a 501c4 entity make contribution to a foreign charity

Customer Question

can a 501c4 entity make contribution to a foreign charity?
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.


Hi and welcome to Just Answer!
501c4 organizations are not organized for profit but operated exclusively for the promotion of social welfare. These organizations include Civic Leagues, Social Welfare Organizations, and Local Associations of Employees.
Contributions to foreign charities are neither specifically allowed or prohibited. I do not think it woudl be an issue if teh amount of contribution is relatively small, the contribution do not contradicts with the ByLaws of the 501c4 organization, and doesn't violate US laws.
However - the IRS may question if such contribution violates 501c4 and in case of objections - that may jeopardize tax exempt status of the organization.
According to Reg. 1. 501(c)(4)-1(a)(2)(i) -
An organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the community.
You might be asked to proof that contributions to a foreign charities are within that definition.
I am sorry if you expected a definite answer. Unfortunately we are in a gray area - and you have to be very careful.