Nonprofit Blog

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Friday, July 8, 2011

No Gift Tax Liability for Contributions to 501(c)(4)s

Posted by Armanino Nonprofit Team

The IRS recently stated that it “will not use resources to pursue examination” on gift tax on contributions to 501(c)(4)s – social welfare organizations. The IRS previously threatened to apply a gift tax for contributions to these organizations. With election year quickly approaching and lots of media attention, there was concern that individuals might be subject to gift tax that gave large sums to these organization. The IRS indicated that they are looking to Congress to provide additional guidance or legislation. In the meantime, individuals can contribute to 501(c)(4) organizations without fear of gift tax liability.

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