Why aren't contributions to YIMBY Action tax deductible?
What it means to be a 501(c)(4) nonprofit
Lobbying and political campaign activities are critical to our mission.
The housing shortage is a policy problem, stemming from a web of bad laws that make building housing impossible or extremely difficult. Elected officials create these laws.
To change bad laws, we need to elect leaders who commit to passing better housing laws. We also need to lobby to persuade electeds to introduce and pass these better laws.
Fund our work to change policy through the democratic process.
Fund our work on education, legal enforcement, etc.
YIMBY Action is a 501(c)(4) social welfare organization with Tax ID 81-5140915. Contributions are not tax deductible because 501(c)(4) organizations have the ability to affect the political process directly and engage in an unlimited amount of lobbying.
YIMBY Action is a Nonprofit Organization
501(c)(4)s are a type of nonprofit. As specified under Internal Revenue Service code 501(c)(4), YIMBY Action does not generate profit, and we operate exclusively to promote social welfare.
YIMBY Action is a Nonprofit that Engages in Political Activities and Lobbying
501(c)(3) nonprofits are the most familiar type of nonprofit because they are the most common. Unlike 501(c)(3) nonprofits for which lobbying activities are limited, 501(c)(4) nonprofits may do an unlimited amount of lobbying to advance social welfare. 501(c)(4) nonprofits may also engage in some political campaign activities on behalf of or in opposition to candidates for public office, which 501(c)(3)s may not do. For example, YIMBY Action endorses candidates and publicizes those endorsements.
Because 501(c)(4) nonprofits engage in lobbying and political activities, all donations to 501(c)(4) nonprofits are not tax deductible.
How to Make Tax-Deductible Donations to the Pro-Housing Movement
If you do want to make a tax-deductible donation, we encourage you to give to YIMBY Action’s affiliated 501(c)(3), Yes In My Back Yard. 501(c)(3) funds are less flexible for the pro-housing cause because they may not be used on political activities and lobbying critical to the success of the movement. However, 501(c)(3) donations may be used for education, administrative advocacy, legal enforcement, and other non-political activities that are also critical.
If your employer matches donations, we especially encourage you to consider a 501(c)(3) donation.
Yes In My Back Yard also accepts donations from donor-advised funds, foundation gifts, and stock donations. Learn more and give.