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Tax

Apr. 22, 2025

Tax-exempt advocacy under pressure: The diverging paths of 501(c)(3) and 501(c)(4) organizations

Amid rising political scrutiny and legal uncertainty, California nonprofits must navigate shifting rules and rising risks around 501(c)(3) and (4) advocacy to protect their tax-exempt status and public trust.

Roberto Escobar

 Tax-exempt advocacy under pressure: The diverging paths of 501(c)(3) and 501(c)(4) organizations
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Escalating political tensions - from threats to revoke Harvard's tax-exempt status to growing concerns about "dark money" - have renewed scrutiny of nonprofit advocacy. As nonprofits increasingly shape public discourse, the distinction between 501(c)(3) and 501(c)(4) entities has become both more essential and more contested.

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