I.R.C. § 504(a) General Rule
An organization which—
I.R.C. § 504(a)(1)
was exempt (or was determined by the Secretary to be exempt) from taxation under
section 501(a) by reason of being an organization described in section 501(c)(3), and
I.R.C. § 504(a)(2)
is not an organization described in section 501(c)(3)—
I.R.C. § 504(a)(2)(A)
by reason of carrying on propaganda, or otherwise attempting, to influence legislation,
I.R.C. § 504(a)(2)(B)
by reason of participating in, or intervening in, any political campaign on behalf
of (or in opposition to) any candidate for public office, shall not at any time thereafter
be treated as an organization described in section 501(c)(4).
I.R.C. § 504(b) Regulations To Prevent Avoidance
The Secretary shall prescribe such regulations as may be necessary or appropriate
to prevent the avoidance of subsection
(a), including regulations relating to a direct or indirect transfer of all or part
of the assets of an organization to an organization controlled (directly or indirectly)
by the same person or persons who control the transferor organization.
I.R.C. § 504(c) Churches, Etc.
Subsection (a) shall not apply to any organization which is a disqualified organization
within the meaning of section 501(h)(5) (relating to churches, etc.) for the taxable year immediately preceding the first
taxable year for which such organization is described in paragraph (2) of
(Added Pub. L. 94-455, title XIII, 1307(a)(2), Oct. 4, 1976, 90 Stat. 1721, and amended Pub. L. 100-203, title X, 10711(b)(1),
(2)(A), Dec. 22, 1987, 101 Stat. 1330-464.)
1987--Pub. L. 100-203, 10711(b)(2)(A), substituted “substantial lobbying or because of political activities”
for “substantial lobbying” in section catchline.
Subsec. (a)(2). Pub. L. 100-203, 10711(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows:
“is not an organization described in section 501(c)(3) by reason of carrying on propaganda,
or otherwise attempting, to influence legislation,”.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable with respect to activities after Dec. 22, 1987, see section 10711(c) of
Pub. L. 100-203, set out as a note under section 170 of this title.
Section 1307(a)(3) of Pub. L. 94-455 provided that: “It is the intent of Congress that enactment of this section [amending
section 501 and enacting section 504 of this title] is not to be regarded in any way
as an approval or disapproval of the decision of the Court of Appeals for the Tenth
Circuit in Christian Echoes National Ministry, Inc. versus United States, 470 F.2d 849 (1972), or of the reasoning in any of the opinions leading to that decision.”
A prior section 504, acts Aug. 16, 1954, ch. 736, 68A Stat. 168; Oct. 22, 1968, Pub. L. 90-630, 6(a), 82 Stat. 1330, relating to denial of exemption, was repealed by Pub. L. 91-172, title I, 101(j)(15), Dec. 30, 1969, 83 Stat. 527. For effective date of repeal,
see section 101(k)(2)(B) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title.