IRS Puts Open Source Projects Under Microscope, Spawns Nonprofit Black Hole (Wired)

Posted Jul 2, 2013 8:20 UTC (Tue) by jzbiciak (guest, #5246)
In reply to: IRS Puts Open Source Projects Under Microscope, Spawns Nonprofit Black Hole (Wired) by rahvin
Parent article: IRS Puts Open Source Projects Under Microscope, Spawns Nonprofit Black Hole (Wired)

The only problem with this explanation is that typically open source projects (like Xiph) organize under 501(c)(3), and the social charity designation that's getting flooded as you describe is 501(c)(4). There isn't a good reason why 501(c)(3) should get such additional scrutiny, since 501(c)(3)s are very strictly prohibited from political activity.

More details: https://en.wikipedia.org/wiki/501(c)_organization