‍Karl has talked before about our own affiliated 501(c)(4) organization, MLC Collective Fund and has also explained how some folks are using 501(c)(4) organizations as “superfoundations”.

‍ Because I really enjoy advising our clients about 501(c)(4) organizations (including about forming 501(c)(4)s, managing resources between 501(c)(4) and 501(c)(3) affiliates, and understanding the differences in the various restrictions on activities of 501(c)(4) and 501(c)(3) organizations), I’m happy for the chance to introduce myself to the MLC Blog with a post about 501(c)(4) organizations.

Specifically, I want to talk about two important exceptions to the rule that 501(c)(4) organizations don’t pay tax.

‍ ‍But first, let’s quickly refresh our collective understanding of what a 501(c)(4) organization is. Karl’s discussion here with his (imaginary) billionaire friends provides an overview of the income, gift, and estate tax considerations for donors to 501(c)(4) organizations. I’ll quickly summarize those points here (but if you haven’t read through that piece yet, I encourage you to go take a look).

Since reading The Lever and ProPublica’s excellent and essential joint piece, by Andrew Perez, Andy Kroll & Justin Elliott this morning, I have been wrestling with the best way to write about Barre Seid’s $1.6B gift to “The Marble Freedom Trust.” The Trust, a 501(c)(4), will be run by Leonard Leo, the co-chair of the Federalist Society who advised on the prior administration’s disfiguration of the judicial branch and is dedicated to various conservative and theocratic causes. 

I find the current state of affairs repugnant, and it is brutally depressing to see our country’s reactionary forces so thoroughly financed in perpetuity.  So, rather than try to organize a blog post, I will just free-associate…