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    tomphm Posts: 1, Reputation: 1
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    #1

    Apr 24, 2009, 04:54 AM
    IRS 501c(4) Neighborhood Defined
    Can an online social networking site be considered as a "particular municipality or neighborhood" by IRS 501c(4) filing standards?
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    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Apr 24, 2009, 06:57 AM
    Quote Originally Posted by tomphm View Post
    Can an online social networking site be considered as a "particular municipality or neighborhood" by IRS 501c(4) filing standards?
    26 USC, section 501(c) provides that the following organizations are exempt from taxation:
    "(4)
    (A) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.
    (B) Subparagraph (A) shall not apply to an entity unless no part of the net earnings of such entity inures to the benefit of any private shareholder or individual. "

    It doesn't say "or neighborhood". So, the short answer is "no". A social networking site is not a municipality.
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