Tax-Exempt Organizations and Permissible Political Activities*
Social Welfare Organizations
Political Organizations
Tax Treatment Organization pays federal income tax No No No
Donor can deduct contributions Yes No No
Organization access to foundation grants Open Restricted Forbidden
Donor pays federal gift tax No Yes No
Donor pays capital gains tax on gifts of appreciated stock No No Yes
Lobbying Activities   Permitted but limited Unlimited Permitted but taxed unless to support or oppose a candidate
Election-Related Activities Activities in support of or opposition to candidates No Yes, as secondary activity Yes
Partisan activities Non-partisan only (e.g., voter education and registration) Partisan activities allowed but taxable Partisan activities limited only by federal and state election law
Examples   • Churches
Texas Public Policy Foundation
Center for Public Policy Priorities
Texas Democracy Foundation
American Values
The American Cause
•  League of Women Voters
Recreational Fishing Alliance, Texas
Texas Home School Coalition Association
Texas Christian Coalition
Downwinders at Risk
•  Political Parties
• Political Campaigns
• PACs
Club for Growth Inc. Voter Fund
long description of table
Source: IRS; Organizing for Social Change; Center for Public Integrity. (full source, footnote)