[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.501(c)(4)-1]

[Page 17]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.501(c)(4)-1  Civic organizations and local associations of employees.

    (a) Civic organizations--(1) In general. A civic league or 
organization may be exempt as an organization described in section 
501(c)(4) if--
    (i) It is not organized or operated for profit; and
    (ii) It is operated exclusively for the promotion of social welfare.
    (2) Promotion of social welfare--(i) In general. An organization is 
operated exclusively for the promotion of social welfare if it is 
primarily engaged in promoting in some way the common good and general 
welfare of the people of the community. An organization embraced within 
this section is one which is operated primarily for the purpose of 
bringing about civic betterments and social improvements. A social 
welfare organization will qualify for exemption as a charitable 
organization if it falls within the definition of charitable set forth 
in paragraph (d)(2) of Sec. 1.501(c)(3)-1 and is not an action 
organization as set forth in paragraph (c)(3) of Sec. 1.501(c)(3)-1.
    (ii) Political or social activities. The promotion of social welfare 
does not include direct or indirect participation or intervention in 
political campaigns on behalf of or in opposition to any candidate for 
public office. Nor is an organization operated primarily for the 
promotion of social welfare if its primary activity is operating a 
social club for the benefit, pleasure, or recreation of its members, or 
is carrying on a business with the general public in a manner similar to 
organizations which are operated for profit. See, however, section 
501(c)(6) and Sec. 1.501(c)(6)-1, relating to business leagues and 
similar organizations. A social welfare organization that is not, at any 
time after October 4, 1976, exempt from taxation as an organization 
described in section 501(c)(3) may qualify under section 501(c)(4) even 
though it is an action organization described in Sec. 1.501(c)(3)-
1(c)(3)(ii) or (iv), if it otherwise qualifies under this section. For 
rules relating to an organization that is, after October 4, 1976, exempt 
from taxation as an organization described in section 501(c)(3), see 
section 504 and Sec. 1.504-1.
    (b) Local associations of employees. Local associations of employees 
described in section 501(c)(4) are expressly entitled to exemption under 
section 501(a). As conditions to exemption, it is required (1) that the 
membership of such an association be limited to the employees of a 
designated person or persons in a particular municipality, and (2) that 
the net earnings of the association be devoted exclusively to 
charitable, educational, or recreational purposes. The word local is 
defined in paragraph (b) of Sec. 1.501(c)(12)-1. See paragraph (d) (2) 
and (3) of Sec. 1.501(c)(3)-1 with reference to the meaning of 
charitable and educational as used in this section.

[T.D. 6500, 25 FR 11737, Nov. 26, 1960; 25 FR 14021, Dec. 31, 1960, as 
amended by T.D. 8308, 55 FR 35588, Aug. 31, 1990]