Wikisource has original text related to this article: USC 26 § 501

Colloquially, a 501(c) organization, also referred to as a 501(c), is an American tax-exempt nonprofit organization. Section 501(c) of the United States Internal Revenue Code (26 U.S.C. § 501(c)) provides that 28 types of nonprofit organizations are exempt from some federal income taxes. Sections 503 through 505 set out the requirements for attaining such exemptions. Many states refer to Section 501(c) for definitions of organizations exempt from state taxation as well.

Types[link]

According to the IRS Publication 557, in the Organization Reference Chart section, the following is an exact list of 501(c) organization types and their corresponding descriptions.^[1]

• 501(c)(1) — Corporations Organized Under Act of Congress (including Federal Credit Unions)
• 501(c)(2) — Title Holding Corporation for Exempt Organization
• 501(c)(3) — Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
• 501(c)(4) — Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
• 501(c)(5) — Labor, Agricultural, and Horticultural Organizations
• 501(c)(6) — Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
• 501(c)(7) — Social and Recreational Clubs
• 501(c)(8) — Fraternal Beneficiary Societies and Associations
• 501(c)(9) — Voluntary Employee Beneficiary Associations
• 501(c)(10) — Domestic Fraternal Societies and Associations
• 501(c)(11) — Teachers' Retirement Fund Associations
• 501(c)(12) — Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, etc.
• 501(c)(13) — Cemetery Companies
• 501(c)(14) — State-Chartered Credit Unions, Mutual Reserve Funds
• 501(c)(15) — Mutual Insurance Companies or Associations
• 501(c)(16) — Cooperative Organizations to Finance Crop Operations
• 501(c)(17) — Supplemental Unemployment Benefit Trusts
• 501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959)
• 501(c)(19) — Post or Organization of Past or Present Members of the Armed Forces
• 501(c)(21) — Black lung Benefit Trusts
• 501(c)(22) — Withdrawal Liability Payment Fund
• 501(c)(23) — Veterans Organization (created before 1880)
• 501(c)(25) — Title Holding Corporations or Trusts with Multiple Parents
• 501(c)(26) — State-Sponsored Organization Providing Health Coverage for High-Risk Individuals
• 501(c)(27) — State-Sponsored Workers' Compensation Reinsurance Organization
• 501(c)(28) — National Railroad Retirement Investment Trust

General compliance issues[link]

Under Section 511, a 501(c) organization is subject to tax on its "unrelated business income," whether or not the organization actually makes a profit, but not including selling donated merchandise or other business or trade carried on by volunteers, or certain bingo games.^[2] Disposal of donated goods valued over $2,500, or acceptance of goods worth over $5,000 may also trigger special filing and record-keeping requirements.

Note that "tax exempt" also does not excuse an organization from maintaining proper records and filing any required annual or special-purpose tax returns.^[3] Previously, annual returns were not generally required from an exempt organization accruing less than $25,000 in gross income yearly.^[4] However, from 2008 onwards, many such organizations must file a yearly "e-Postcard" known as Form 990-N, or risk losing their exemption.^[5]

Failure to file required returns such as Form 990 (Return of Organization Exempt From Income Tax) may result in monetary fines of up to $250,000 per year. Exempt or political organizations (excluding churches or similar religious entities) must make their returns, reports, notices, and exempt applications available for public inspection. The organization's Form 990 (or similar such public record as the Form 990-EZ or Form 990-PF) is generally available for public inspection and photocopying at the offices of the exempt organization, through a written request and payment for photocopies by mail from the exempt organization, or through a direct Form 4506-A Request for Public Inspection or Copy or Political Organization IRS Form request to the IRS of the exempt organization filing of Form 990 for the past three tax years. The Form 4506-A also allows the public inspection and/or photocopying access to Form 1023 Application for Recognition of Exemption or Form 1024, Form 8871 Political Organization Notice of Section 527 Status, and Form 8872 Political Organization Report of Contribution and Expenditures. Internet access to an organization's 990 and some other forms is available through information services such as GuideStar.

Failure to file such timely returns and to make other specific information available to the public also is prohibited.^[6]

501(c)(3)[link]

501(c)(3) exemptions apply to corporations, and any community chest, fund, cooperating association or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, to foster national or international amateur sports competition, to promote the arts, or for the prevention of cruelty to children or animals.^[7][8] These bodies are often referred to in shorthand form as "Friends of" organizations.^{[9][10][11][12][13]}

Another provision, 26 U.S.C. § 170, provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501(c)(3) organizations, among others. Regulations specify which such deductions must be verifiable to be allowed (e.g., receipts for donations over $250). Due to the tax deductions associated with donations, loss of 501(c)(3) status can be highly challenging to a charity's continued operation, as many foundations and corporate matching programs do not grant funds to a charity without such status, and individual donors often do not donate to such a charity due to the unavailability of the deduction.

Testing for public safety is described under section 509(a)(4) of the code, which makes the organization a public charity and not a private foundation,^[14] but contributions to 509(a)(4) organizations are not deductible by the donor for federal income, estate, or gift tax purposes.

The two exempt classifications of 501(c)(3) organizations are as follows:^[15]

A public charity, identified by the Internal Revenue Service (IRS) as "not a private foundation," normally receives a substantial part of its income, directly or indirectly, from the general public or from the government. The public support must be fairly broad, not limited to a few individuals or families. Public charities are defined in the Internal Revenue Code under sections 509(a)(1) through 509(a)(4).

A private foundation, sometimes called a non-operating foundation, receives most of its income from investments and endowments. This income is used to make grants to other organizations, rather than being dispersed directly for charitable activities. Private foundations are defined in the Internal Revenue Code under section 509(a) as 501(c)(3) organizations, which do not qualify as public charities.

Before donating to a 501(c)(3) organization, a donor may wish to review IRS Publication 78, which lists organizations currently exempt under 501(c)(3).^[16] Donors may also verify 501(c)(3) organizations on the web-based, searchable IRS list of charitable organizations^[17] as well as on lists maintained by the states, typically on states' Departments of Justice websites. Churches, however, have specific requirements to obtain and maintain tax exempt status; these are outlined in IRS Publication 1828: Tax guide for churches and religious organizations.^[18] This guide clearly outlines activities allowed and not allowed by churches under the 501(c)(3) designation. A private, nonprofit organization, GuideStar, also provides reputable and detailed results for web-based searching to verify information on 501(c)(3) organizations.^[19]

Consumers may file IRS Form 13909 with documentation to complain about inappropriate or fradulent (i.e., fundraising, political campaigning, lobbying) activities by any 501(c)(3) tax-exempt organization.^[20]

Obtaining status[link]

Most organizations acquire 501(c)(3) tax exemption by filing IRS Form 1023. The form must be accompanied by a $850 filing fee if the yearly gross receipts for the organization are expected to average $10,000 or more.^[21][22] If yearly gross receipts are expected to average less than $10,000, the filing fee is reduced to $400.^[21][22] There are some classes of organizations that automatically are treated as tax exempt under 501(c)(3), without the need to file Form 1023:

• Churches, their integrated auxiliaries, and conventions or associations of churches^[23]
• Organizations that are not private foundations and that have gross receipts that normally are not more than $5,000^[24]

The IRS also expects to release a software tool called Cyber Assistant, which will assist with preparation of the application for tax exemption. But as of late 2011 the agency has stated "Software testing revealed problems requiring correction prior to public launch, and the IRS had to delay the release. Because the IRS must balance a number of competing information technology needs, we cannot presently predict when Cyber Assistant will be available."^[25]

Political activity[link]

Section 501(c)(3) organizations are subject to limits or absolute prohibitions on engaging in political activities and risk loss of status as tax exempt status if violated.^[26]

Elections[link]

Organizations described in section 501(c)(3) are prohibited from conducting political campaign activities to intervene in elections to public office.^[27] The Internal Revenue Service website elaborates upon this prohibition as follows:

Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.

Certain activities or expenditures may not be prohibited depending on the facts and circumstances. For example, certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner do not constitute prohibited political campaign activity. In addition, other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not be prohibited political campaign activity if conducted in a non-partisan manner.

On the other hand, voter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention.

The Internal Revenue Service provides resources to exempt organizations and the public to help them understand the prohibition. As part of its examination program, the IRS also monitors whether organizations are complying with the prohibition.

Lobbying[link]

In contrast to the absolute prohibition on political campaign interventions by all section 501(c)(3) organizations, public charities (but not private foundations) may conduct a limited amount of lobbying to influence legislation. Although the law states that "No substantial part..." of a public charity's activities can go to lobbying, charities with large budgets may lawfully expend a million dollars (under the "expenditure" test), or more (under the "substantial part" test) per year on lobbying.^[28] To clarify the standard of the "substantial part" test, Congress enacted §501 (h) (called the Conable election after its author Representative Barber Conable). The section establishes limits based on operating budget that a charity can use to determine if it meets the substantial test. This changes the prohibition against direct intervention in partisan contests only for lobbying. The organization is now presumed in compliance with the substantiality test if they work within the limits. The Conable Election requires a charity to file a declaration with the IRS and file a functional distribution of funds spreadsheet with their Form 990. IRS form 5768^[29] is required to make the Conable election.

501(c)(4)[link]

501(c)(4) organizations are generally civic leagues and other corporations operated exclusively for the promotion of social welfare, or local associations of employees with membership limited to a designated company or people in a particular municipality or neighborhood, and with net earnings devoted exclusively to charitable, educational, or recreational purposes.^[30] 501(c)(4) organizations may lobby for legislation, and unlike 501(c)(3) organizations they may also participate in political campaigns and elections, as long as its primary activity is the promotion of social welfare.^[31] The tax exemption for 501(c)(4) organizations applies to most of their operations, but contributions may be subject to gift tax, and income spent on political activities - generally the advocacy of a particular candidate in an election - is taxable.^[32]

Contributions to 501(c)(4) organizations are not deductible as charitable contributions for the U.S. income tax. 501(c)(4) organizations are not required to disclose their donors publicly.^[33] This aspect of the law has led to extensive use of the 501(c)(4) provisions for organizations that are actively involved in lobbying, and has become controversial.^[34][35] In 2010, a bill (the DISCLOSE Act) was passed by the U.S. House of Representatives that addressed identification of donors to organizations involved in political advocacy,^[36] but the Senate Republicans filibustered and prevented a vote on the bill.^[37]

In summer 2011, comedian Stephen Colbert brought attention to the issue of Super PACs by forming his own and a 501(c)(4).^[38] As of August 2011, 165,000 of his viewers had joined it.^[39] Colbert refers to 501(c)(4) organizations as "spooky PACs".

501(c)(5)[link]

501(c)(5) organizations include labor, agricultural, and horticultural organizations. Labor unions, county fairs, and flower societies are examples of these types of groups. They share a requirement that benefits may not "inure" to a specific member but the rules for inurement vary among the three different types of organizations under this segment.^[40]

501(c)(6)[link]

501(c)(6) organizations include Business Leagues, Home Builders Association, Chambers of Commerce, Real Estate Boards, etc. such as the U.S. Chamber of Commerce political action committee and the National Football League.

See also[link]

United States portal

• 527 organization
• GuideStar offers information on more than 50,000 501(c)(3) public charities and private foundations.
• Political action committee

References[link]

External links[link]

• "IRS list of charities eligible to receive deductible contributions search or download". Internal Revenue Service. http://www.irs.gov/charities/article/0,,id=96136,00.html. 
• "IRS Publication 557". Internal Revenue Service. http://www.irs.gov/pub/irs-pdf/p557.pdf.  Publication 557 governs 501(c) organizations.
• "Look up funds in a 501(c)(3) (990 search)". Foundation Center. http://tfcny.fdncenter.org/990s/990search/esearch.php. 
• "Historical data regarding the number of 501(c) organizations in the U.S.". Data 360. http://www.data360.org/graph_group.aspx?Graph_Group_Id=267. 
• "Number, Finances and other data on 501(c) organizations". National Center for Charitable Statistics. http://nccs.urban.org. 

This biographical article needs additional citations for verification. Please help by adding reliable sources. Contentious material about living persons that is unsourced or poorly sourced must be removed immediately, especially if potentially libelous or harmful. (November 2008)

John Rzeznik
Rzeznik performing Sweetest Lie on July 23rd, 2010 at Darien Lake Performing Arts Centre
Background information
Birth name	John Joseph Theodore Rzeznik
Born	(1965-12-05) December 5, 1965 (age 46)
Origin	Buffalo, NY, United States
Genres	Rock, Alternative rock.
Occupations	Singer, songwriter, guitarist,
Instruments	Vocals, Guitar
Years active	1986–present
Labels	Metal Blade Records Warner Music Warner Bros.
Associated acts	Goo Goo Dolls Les Paul
Website	GooGooDolls.com

John Joseph Theodore Rzeznik (born December 5, 1965), also known as Johnny Rzeznik, is an American songwriter, guitarist, vocalist and producer. He is best known as the lead guitarist, vocalist, frontman, and primary songwriter of the rock band the Goo Goo Dolls, of which he is a founding member and with whom he has recorded nine studio albums.

Early life[link]

Rzeznik was born in Buffalo, New York, the youngest of five children of Edith (née Pomeroy) and Joseph Rzeznik, a bar proprietor and postal clerk.^[1][2] His name is pronounced (r)ZHEZ-nik and means 'butcher' in Polish.^[3] Both of Rzeznik's parents were musicians, playing the clarinet and flute. Rzeznik had a strict Catholic upbringing on Buffalo's working-class East Side and attended Corpus Christi Grammar School. Rzeznik's father died from diabetic coma at the age of fifty-five when Rzeznik was fifteen years old. Six months later his mother died from a sudden heart attack. Having lost both of his parents, he was brought up by his four older sisters. It was during this period and while attending McKinley Vocational High School that Rzeznik began playing the guitar. Rzeznik briefly attended Buffalo State College, dropping out after freshman year. Both sides of Rzeznik's grandparents were born in Poland.

Career[link]

Goo Goo Dolls[link]

In 1986, he formed the band that became the Goo Goo Dolls with Robby Takac. Previously John had been in a band with Takac's cousin, called The Beaumonts.^[4] It is thought the band was originally called The Sex Maggots, however Rzeznik admitted this was a joke on stage one night, and he was "never actually in a band called The Sex Maggots".^[5] They got the name Goo Goo Dolls from an ad in a True Detective magazine when a concert promoter asked them to, fearing the local newspapers would not print an advert for a show featuring a band with such a name.

In the early days of The Goo Goo Dolls, the band performed at gigs relentlessly, with Robby as the frontman (Rzeznik gradually becoming the frontman over the next few albums, as each new album contained more songs sung by Rzeznik than the last). They were soon picked up by a small record label, Celluloid. Under Celluloid they released their first eponymous album (later the re-prints would be referred to as "First Release") on a $750 budget. This attracted the attention of a larger record label, Metal Blade, who released their next few albums. For the next few years the band toured, produced albums and held down regular jobs.

Other activity[link]

Following the album Gutterflower, John wrote "Always Know Where You Are" and "I'm Still Here" for the Disney film Treasure Planet,^[6] which were also released as a single independently from the band.

From October to December 2007, Rzeznik was a judge alongside Sheila E. and Australian Idol judge and marketing manager Ian "Dicko" Dickson on the Fox network's The Next Great American Band.^[7]

On June 19, 2008, John Rzeznik was inducted into the Songwriters Hall of Fame and was awarded the Hal David Starlight award.^[8]

Musical style[link]

Influences[link]

Most of the music Rzeznik listened to while growing up was influenced by his sisters, and comprised mostly classic rock such as, The Rolling Stones and The Kinks. The youngest of his four older sisters moved towards punk music and Rzeznik became interested in bands such as the Ramones and The Clash.^[9] Rzeznik attributes his gift for melody to listening to bands such as KISS, Cheap Trick, The Cure and Rush in the early 1980s.^[9] Rzeznik also cites Paul Westerberg as an "obvious influence" on his music.^[10]

Guitar tunings[link]

Rzeznik is well known for his distinctive and unusual guitar tunings. Many of his newer songs, particularly the more acoustic-oriented ones, are performed with his guitars tuned to an open chord with several of the strings tuned to the same note but in different octaves. This gives the guitar a shimmery, jangly sound almost like a 12-string guitar. Perhaps the most famous example of this is the B-D-D-D-D-D tuning of his signature hit "Iris", but other examples include "Name," "Black Balloon," "Think About Me," and "Here Is Gone." Conversely, on earlier albums such as "Superstar Car Wash" and "A Boy Named Goo," Rzeznik often utilized a conventional standard tuning.

Songwriting[link]

Rzeznik believes that writing is not just an inspirational thing but that writing music is "ninety nine percent perspiration." He says that when writing a song, he often "runs tape and screws around with stuff," and that his songs are often both biographical and autobiographical.^[11]

Notable performances[link]

At the 2004 Fashion Rocks! concert in New York, Rzeznik performed a duet version of the song Iris with Canadian pop-punk singer Avril Lavigne.^[12] The Goo Goo Dolls also performed the song "Name" at a live concert with LeeAnn Rimes. Rzeznik also performed Pink Floyd's "Wish You Were Here" with Fred Durst from Limp Bizkit for the victims of September 11 as a tribute to the heroes.

On July 4, 2004, Rzeznik and his bandmates returned home to Buffalo and played a free show to give back to their loyal fans, over 60,000 of whom attended. The day quickly became a city triumph when rain came pouring down during their performance. It turned out to be one of the strongest rain storms of the year in Buffalo, but the Goo Goo Dolls did not stop playing. Rzeznik declared, "We're going to keep going until this shit stops". This performance was captured on DVD and CD for the public in the Goo Goo Dolls release Live in Buffalo: July 4th 2004.

Rzeznik also performed a version of U2's "All I Want is You" on the album Les Paul and Friends.

Equipment[link]

Rzeznik has used many different guitar brands and models over the years. On Superstar Car Wash, he endorsed ESP guitars. The liner notes of A Boy Named Goo list Epiphone as his guitar of choice. Since the late '90s, Rzeznik has been using Fender electric guitars. He has used many variations such as the Stratocaster, Telecaster, Jaguar and a "Halfcaster" (a Stratocaster cut in half). He also used Guild acoustic guitars on both the "Dizzy Up the Girl" and "Gutterflower" tours. Rzeznik in a 2003 interview noted that "No matter what guitar I have it seems that anything with strings makes music to my ears." ^[11] Guild models used include several D-55s (unusually, most of his D-55s were built in Fender's Corona, California Shop), a black F65CE, multiple Peregrine/S7CE Customs (a Guild Custom Shop Model), a black Songbird/S4CE, and a black F47M. Live performances of this time sometimes showed the auxiliary guitarist, Greg Suran, using some Guild acoustics such as the DV-52 and F-47M in natural finishes.

Since beginning the "Let Love In" tour, Rzeznik has been experimenting with Gibson Les Paul guitars and semi-hollow body electric guitars. He also uses Taylor 800 and 900 series acoustic guitars while on tour. He has stated that the Taylor Expression System (9V version) is one of the only forms of acoustic guitar amplification that still let the guitars "sound like wood" when played through a house PA system.

Early studio footage from the Goo Goo Dolls' 9th studio album, Something for the Rest of Us shows John playing Taylor acoustics, in addition to Gibson acoustic and electric guitars.

Discography[link]

• Goo Goo Dolls (1986), Celluloid Records later re-released as First Release (1987), Metal Blade Records
• Jed (1989), Metal Blade Records
• Hold Me Up (1990), Metal Blade Records
• Superstar Car Wash (1993), Metal Blade Records
• A Boy Named Goo (1995), Metal Blade Records
• Dizzy Up The Girl (1998), Warner Bros. Records
• Gutterflower (2002), Warner Bros. Records
• Let Love In (2006), Warner Bros. Records
• Something for the Rest of Us (2010), Warner Bros. Records

Solo singles[link]

Collaborations/Individual Discography[link]

• Limp Bizkit and Johnny Rzeznik - "Wish You Were Here" - America: A Tribute to Heroes (2001)
• "I'm Still Here (Jim's Theme)" - Treasure Planet (2002)
• "Always Know Where You Are"^[14] - Treasure Planet (2003)
• "For Your Love" - with The Yardbirds - Birdland (2003)
• "Once in a Lifetime" - Good Morning Miami theme
• "All I Want is You" - Les Paul & Friends: American Made World Played (2005)
• "Men of War" - with Steve Morse & Michael Lee Jackson (original version from the Gillan album, Double Trouble) - Gillan's Inn (2006)

Personal Quotes[link]

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"Everything happens for a reason & if you stand right where you are now, & you look down & back to everything. to all the events that lead up to you sitting in this room right now with me, you'll see where the order is & where you are right now is pretty amazing. Where we all are, where I am right now is amazing".

"I always have this thing; if you write a really cool song, & then you put your leather pants on, you go out, and play, that's cool. That's playing with your image. If you put the leather pants on, & write a song to fit the pants, you're a total poser. You're being more conscious of your image than your craft, or whatever you want to call it, & you really have to avoid that".

"When you find success, suddenly you have to defend your credibility against these idiots who don't know a thing about you".

"It's better to have a pocket full of regrets than to never have lived."

"It's such a thrill to perform live. You never know if you're going to get hit with a bottle or a bra."

"Los Angeles is good and bad because it's full of people that are either running away from something or looking for something."... "It's the most unintentionally funny city in the world."

References and notes[link]

IMDb: John Rzeznik. Retrieved 2011-12-6

External links[link]

• Goo Goo Dolls official site
• Interview With Goo Goo Dolls

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