Think All Tax-Exempt Donations Are Deductible? Think Again!

Benzinga_recent_news01-22

“Not all tax-exempt organizations offer the donor deduction benefit. For example, social welfare groups (501(c)(4)) and trade associations (501(c)(6)) are tax-exempt, but donations to them are usually...

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For example, social welfare groups (501(c)(4)) and trade associations (501(c)(6)) are tax-exempt, but donations to them are usually...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/01/50067317/think-all-tax-exempt-donations-are-deductible-think-again\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Think All Tax-Exempt Donations Are Deductible? 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Think Again!\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-22 22:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/Opinion/26/01/50067317/think-all-tax-exempt-donations-are-deductible-think-again><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>“Not all tax-exempt organizations offer the donor deduction benefit. For example, social welfare groups (501(c)(4)) and trade associations (501(c)(6)) are tax-exempt, but donations to them are usually...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/01/50067317/think-all-tax-exempt-donations-are-deductible-think-again\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4205","symbol_name":"房地产经营公司","start_time":0,"source_url":"https://www.benzinga.com/Opinion/26/01/50067317/think-all-tax-exempt-donations-are-deductible-think-again","article_id":"2605492764","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/01/22/image_0.png?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/Opinion/26/01/50067317/think-all-tax-exempt-donations-are-deductible-think-again","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605492764","pubTimestamp":1769091060,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Charitable groups, also called nonprofits, get a special break from the government called a tax exemption. This means they don't have to pay certain taxes, allowing them to spend more money on their actual mission.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4205":"房地产经营公司","IRS":"IRSA Inversiones y Representacio","BK4233":"房地产运营公司"},"translate_title":"你认为所有免税捐款都可以扣除吗？再想想！","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IRS":1},"content_text":"“Not all tax-exempt organizations offer the donor deduction benefit. For example, social welfare groups (501(c)(4)) and trade associations (501(c)(6)) are tax-exempt, but donations to them are usually not deductible for the donor.”\nCharitable groups, also called nonprofits, work to fix problems in our communities, from helping the poor to protecting nature, and they get a special break from the government called a tax exemption. This means they don’t have to pay certain taxes, allowing them to spend more money on their actual mission.\nBut getting this status isn’t automatic or simple. In the U.S., it’s mostly overseen by the Internal Revenue Service (IRS) and involves following a strict set of rules.\nSimply put, when an organization is “tax-exempt,” it doesn’t have to pay federal income tax on the money it makes from activities directly related to its purpose.\nTo get this, an organization has to apply and be officially recognized. The most common type is called 501(c)(3). This status is reserved for organizations that are strictly religious, charitable, educational, scientific, or for public safety.\nIt's easy to confuse these two, but they are separate:\nIt is important to note that not all tax-exempt organizations offer the donor deduction benefit. For example, social welfare groups (501(c)(4)) and trade associations (501(c)(6)) are tax-exempt, but donations to them are usually not deductible for the donor.\nTo qualify for 501(c)(3) status, a nonprofit must pass two main tests:\nThe organization's paperwork and founding documents, like the Articles of Incorporation, must state two things:\nThis is about what the organization actually does. The nonprofit must operate almost entirely for its exempt purpose, within the bounds of these two major restrictions:\nTax exemption is not a free pass on all taxes. Nonprofits still have to pay tax on income from an activity that is:\nWhy UBIT? It’s to keep things fair. If a nonprofit starts running a regular business that doesn’t relate to its mission, that income is taxed, so they don’t have an unfair advantage over for-profit companies.\nFor example, a museum’s mission is education, and it is not taxed on its gift shop selling art reproductions, since such an activity is related to education. However, running a public, seven-day-a-week parking garage that anyone can use is not related to the mission, so that income is likely subject to UBIT and will be taxed.\nTo keep their tax-exempt status, most nonprofits must file an annual financial report with the IRS called Form 990. This form is vital because it ensures the organization is accountable to the public:\nCrucially, Form 990s are public. Donors and the general public can look up the last three years of a charity’s 990 to see its financial health and how well it is managed.\nIn short, the tax exemption is a huge privilege, and in return for that benefit, nonprofits must operate with integrity, keep their focus on the public good, and be transparent about their finances. The 501(c)(3) status is a mark of legitimacy that helps them raise the money they need to do their important work.\nBenzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2605492764","isCrawlerRequest":true}