# Plain Language Summary: Increased Transparency in 501(c)(4) Organizations Act of 2024

Right now, certain political and advocacy groups can operate as 501(c)(4) organizations, which is a tax-exempt status that allows them to raise and spend money without disclosing their donors. These groups can be involved in political activities and issue advocacy, but they don't have to tell the public who's funding them. This bill would change that by requiring these organizations to publicly disclose their initial notices when they start operating, just like other nonprofits have to disclose their tax exemption applications.

Currently, when a 501(c)(4) organization files paperwork with the IRS to begin operating, that notice stays private. The bill would make these notices public record, similar to how the IRS already makes other nonprofit applications available for anyone to look up. This means if you wanted to know that a particular political advocacy group had filed to start operating, you could find that information. The change would apply to any notices filed six months after the bill becomes law.

The practical effect is increased transparency about who's organizing politically and when they're getting started. Citizens and journalists would be able to see which groups are filing to operate as 501(c)(4)s, though the bill doesn't require disclosure of who's donating to these groups—just that they exist and when they filed their paperwork. Supporters argue this helps voters understand the political landscape better, while critics might worry about privacy for people starting advocacy organizations.

Increased Transparency in 501(c)(4) Organizations Act of 2024

Norton, Eleanor Holmes

Increased Transparency in 501(c)(4) Organizations Act of 2024This bill requires tax-exempt social welfare organizations under Section 501(c)(4) of the Internal Revenue Code to make notices of intent to operate under that section publicly available in the same manner as applications for tax exemptions made by other nonprofit organizations.&nbsp;