For 501(c)(3)s, the four main activities that can jeopardize the organization’s tax-exempt status are:
- activity that results in private benefit or inurement;
- lobbying activity, if it constitutes a substantial part of the organization’s overall activities or if it exceeds a predetermined dollar amount;
- any political campaign activity; and
- unrelated business activity that is substantial when compared with the organization’s exempt-function activities.
Additional Information
Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities
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.
