The Rise of the 501c4

In July, the Treasury Department announced a change in the regulations making it no longer necessary for 501c4 and 501c6 organizations to disclose the identities of their donors on their annual information returns. The concern with the elimination of the disclosure requirement is that more dark money will flow through 501c4 social welfare organizations like the NRA. contributions to 501c4 organizations are not deductible as charitable contributions. With the increase in the standard deduction, there will be a substantial reduction in the number of taxpayers who itemize their deductions. This means that the vast majority, possibly 95% of taxpayers, will get no tax benefits from making a charitable contribution to a 501c3 charitable organization.