What is the maximum percentage of activities a 501(c)4 organization can devote to social welfare activities?

A 501(c)(4) organization is uniquely structured under the Internal Revenue Code to promote social welfare. These organizations can engage in various activities, but they must primarily operate for the benefit of the community rather than for profit. The key criterion is that over 50% of their activities must be aimed at promoting social welfare. This means that they are permitted to devote significant resources—more than half of their overall activities—toward social welfare initiatives without jeopardizing their tax-exempt status. The focus is on ensuring that these organizations primarily benefit the community and that their efforts are aligned with social welfare concerns.

The other options suggest limitations or amounts of activities that do not align with the IRS requirements for 501(c)(4) organizations. For instance, establishing a cap at less than 50% or exactly 50% would not accurately reflect the legal allowances for these entities. The requirement of more than 75% would too narrowly define the scope of permissible activities for these organizations, which could lead to misunderstandings about their operational flexibilities. Thus, stating that a 501(c)(4) organization can devote more than 50% of its activities to social welfare accurately reflects established regulations.