how the irs regards qualified charitable organizations
to receive the status from the irs qualified charitable organizations must meet requirements under section 501 c 3 of the irc this means that none of the earnings of the organization can go toward any private shareholder or individual the organization may not seek to influence legislation as a substantial part of its actions 2the organization also cannot engage in any political campaign activity in favor of or in opposition to candidates there are also limits on how much lobbying these organizations may do in the legislative and political arenas this includes not being allowed to participate directly or indirectly in political campaigns for candidates for public office furthermore no contributions can be made on behalf of the organization for a political campaign likewise no statements can be made on behalf of the organization in favor of or in opposition to a political candidate programs that promote voter registration and participation in elections are permitted as long as no bias shows favoritism for one candidate over another 6 if the organization breaches such rules it may lose its tax exempt status there are further requirements for qualified charitable organizations they cannot operate or be formed for the benefit of private interests if an organization enters into any excess benefit transactions with someone who has significant influence over it then the organization could face excise taxes 2