! sufficient detail about your past,

CAUTION present, and planned activities to

demonstrate that you’re described in section 501(c)(4). We won’t be able to recognize you as tax exempt based on a mission statement unless you also describe the activities that further accomplish your mission. We need to understand the specific activities you undertake to accomplish your section 501(c)(4) exempt purpose(s).

Financial data Financial data, whether budgets or actual, should be consistent with other information presented in your application. Budgeted financial data should be prepared based on your current plans. We recognize that your actual financial results may vary from the budgeted amounts.

Past, present, and planned activities. Many items on Form 1024-A are written in the present tense; however, base your

Examples. Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies.

Nonprofit operation. You must submit evidence that you are organized and will be operated on a nonprofit basis. However, such evidence, including the fact that you are organized under a state law relating to nonprofit corporations, won't in itself establish a social welfare purpose.

Social welfare. To establish that you are operated primarily to promote social welfare, your application must show you will operate primarily to further the common good and general welfare of the people of the community, such as by bringing about civic betterment and social improvements.

Examples. An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. It therefore doesn't qualify as a section 501(c)(4) organization. Similarly, an organization formed to represent member-tenants of an apartment complex doesn't qualify, since its activities benefit the member-tenants and not all tenants in the community. However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization.

Political activity. Promoting social welfare doesn't include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. However, if your application demonstrates you are organized primarily to promote social welfare, you can obtain exemption even if you participate legally in some political activity on behalf of or in opposition to candidates for public office.

Social or recreational activity. If social activities will be your primary purpose, you shouldn't file an application for exemption as a social welfare organization. However, you may qualify for exemption as a social club described in section 501(c)(7). See Publication 557, Tax-Exempt Status for Your Organization.

Retirement benefit program. An organization established by its members with its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries doesn't qualify as an exempt social welfare organization. It may qualify under another paragraph of section 501(c) depending on all the facts.

However, a nonprofit association that is established, maintained, and funded by a

local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4).

Tax treatment of donations. Contributions to civic leagues or other section 501(c)(4) organizations generally aren't deductible as charitable contributions for federal income tax purposes. They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business and not used for political or legislative activities. Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes.

For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization .

Specific Organizations Volunteer fire companies and homeowners’ associations should include specific information in their applications to support their requests for recognition of exemption under section 501(c)(4).

Volunteer fire companies. If you wish to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that your members are actively engaged in firefighting and similar disaster assistance, whether you actually own the firefighting equipment, and whether you provide any assistance for your members, such as death and medical benefits in case of injury to them. If you don’t have an independent social purpose, such as providing recreational facilities for members, you may be exempt under section 501(c)(3). In this event, you may want to file Form 1023 or Form 1023-EZ, if eligible.

Homeowners' associations. A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Even if an area represented by an association isn't a community, the association can still qualify for exemption if its activities benefit a community.

The association should show that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own

-2- Instructions for Form 1024-A

card. You won't be able to submit Form 1024-A without paying the correct fee.

User fee amounts are listed in Rev. Proc. 2020-5, updated annually. For the current Form 1024-A user fee, go to Rev. Proc. 2020-5, 2020-1 I.R.B. 241, at IRS.gov/Charities-Non-Profits/User-Fees- for-Tax-Exempt-and-Government-Entities- Division . You can also call 877-829-5500.