If an exempt organization is ineligible to receive tax-deductible contributions, it must disclose that contributions or gifts are not deductible as charitable contributions when it solicits contributions. In addition, a section 501(c)(4), 501(c)(5), or 501(c)(6) organization incurs a proxy tax on the amount of certain expenditures not disclosed to members who pay dues to the organization.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
