---
title: "Compare a section 501(c)(3) charity with a section 501(c)(4) social-welfare organisation"
url: "https://ailawframework.com/practice/not-for-profit-charities-and-associations/compare-entity-structures-for-a-not-for-profit/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A35-T1-R2-US"
practice_area: "Not-for-Profit, Charities & Associations"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Compare a section 501(c)(3) charity with a section 501(c)(4) social-welfare organisation

> Put the client's purposes and activities beside the statutory words for section 501(c)(3) and for section 501(c)(4)(A) and (B). Write no conclusion on which paragraph fits.

Canonical page: https://ailawframework.com/practice/not-for-profit-charities-and-associations/compare-entity-structures-for-a-not-for-profit/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Not-for-Profit, Charities & Associations](https://ailawframework.com/practice/not-for-profit-charities-and-associations.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Put the client's purposes and activities beside the statutory words for section 501(c)(3) and for section 501(c)(4)(A) and (B). Write no conclusion on which paragraph fits. |
| What the lawyer must review | You choose the structure. Section 501(c)(3) describes corporations, community chests, funds or foundations organised and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involves providing athletic facilities or equipment), or for the prevention of cruelty to children or animals. No part of the net earnings may inure to a private shareholder or individual. No substantial part of the activities may be carrying on propaganda or otherwise attempting to influence legislation, except as subsection (h) provides. The organisation must not participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office. Section 501(c)(4)(A), as opened, describes civic leagues or organisations not organised for profit but operated exclusively for the promotion of social welfare, or local associations of employees whose membership is limited to employees of a designated person or persons in a particular municipality, with net earnings devoted exclusively to charitable, educational or recreational purposes. Section 501(c)(4)(B) says subparagraph (A) does not apply unless no part of the net earnings inures to a private shareholder or individual. The Internal Revenue Service states that an organisation described in section 501(c)(3), other than a testing-for-public-safety organisation, is eligible to receive tax-deductible contributions under section 170. You do not add a lobbying or campaign rule for a social-welfare organisation from memory. |
| Written for | United States |
| Applies to | [Compare entity structures for a not-for-profit](https://ailawframework.com/practice/not-for-profit-charities-and-associations/compare-entity-structures-for-a-not-for-profit.md) |

## Checking plan

- What the AI does: Put the client's purposes and activities beside the statutory words for section 501(c)(3) and for section 501(c)(4)(A) and (B). Write no conclusion on which paragraph fits.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Only § 501(c)(3) and § 501(c)(4)(A) and (B) were used. Other paragraphs of § 501(c), including (c)(6), were not compared.
- The page states section 170 deductibility for a 501(c)(3) organisation other than testing for public safety. It does not state the deduction result for a 501(c)(4) organisation. Do not invent that result.

## Sources

- [26 U.S.C. § 501, exemption from tax on corporations, certain trusts, etc.](https://www.law.cornell.edu/uscode/text/26/501) (checked 2026-10-22)
- [IRS, Exemption requirements for section 501(c)(3) organizations](https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations) (checked 2026-10-22)
- [26 CFR § 1.501(c)(3)-1, organisational and operational tests](https://www.law.cornell.edu/cfr/text/26/1.501(c)(3)-1) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*