What’s the difference between a c3 and a c4 non-profit?
Chances are, you’ve heard the phrases “c3” or “c4” during your tenure at PPCWNY. But do you know what they refer to? Or the difference between them?
“c3” and “c4” are shorthand terms for two different types of non-profits: 501(c)(3)’s are tax-exempt non-profits, while 501(c)(4)’s are non-profits that engage in political activity. Contributions to the latter are not tax deductible. Some organizations, including many Planned Parenthood affiliates and PPCWNY, are designated as both a c3 and a c4.
At PP, c3 connotes the charitable arm of the organization; c4 is the advocacy portion, the social welfare organization that fights to protect health care access. There are specific rules about the activities and actions that can take place using c3 versus c4 funds, especially when it comes to lobbying.
Here’s the c3 v. c4 breakdown:
ACTIVITY | 501(c)(3) AFFILIATE/CHARITY | 501(c)(4) ADVOCACY/SOCIAL WELFARE |
Voice of... |
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Lobbying |
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Elections |
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Ballots |
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Focus on Legislators |
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Nonpartisan |
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