403(b)
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A retirement plan for non profit organizations that allows pre-tax contributions and investments to grow tax-free. However, taxes are applied upon withdrawal as that is considered income. |
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457
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Commonly referred to as salary reduction plans or nonqualified deferred compensation plans, this type of retirement plan is available to state and municipal government employees. Plan participants may voluntarily contribute pre-tax income up to a certain amount per year. |
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50% Limitation
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Fifty percent of individual donors' contribution bases, which is the maximum amount that they can claim as deductions for gifts to nonprofits in any tax year. Gifts must be "to," not just "for the use of," a nonprofit to qualify for the 50% limitation. |
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50% Limitation Charity
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An organization described in IRS Section 170(b)(1)(A). |
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50% Organization
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An organization described in IRS Section 170(b)(1)(A). |
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501(c)(3)
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Section of the Internal Revenue Code that designates an organization as charitable and tax exempt. Organizations qualifying under this section include religious, educational, charitable, amateur athletic, scientific or literary groups, foundations, organizations testing for public safety or organizations involved in prevention of cruelty to children or animals. |
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501(c)(4)
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Nonprofit entities to which contributions are tax-deductible to the extent permitted by law. 501c(4) organizations are community or fraternal organizations that are not solely charitable. |
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501(h)
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The expenditure test for lobbying activity under IRS section 4911, which sets limits for lobbying expenditures based on budget size, but capped at $1,000,000. |
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501(h) Election
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The option to have lobbying activity evaluated under the 501(h) expenditure test, rather than the Insubstantial Part Test. |
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509(a)
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Section of the tax code that defines public charities (as opposed to private foundations). A 501(c)(3) organization also must have a 509(a) designation to further define it as a public charity. |
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