Ineligible: 501(c)(19) Veterans Organizations

The IRS distinguishes in granting tax-exemption to nonprofit organizations based on their organizational and operational structure. In order to qualify as a 501(c)(3) Public Charity, an organization must be both organized and operated exclusively for charitable purposes, and no part of its net earnings may inure to the benefit of any private individual. 

A 501(c)(3) charity is furthermore prohibited from engaging in any political campaign activity or from engaging in more than an insubstantial amount of lobbying activity. These restrictions on a 501(c)(3) charity’s organization and operation are what distinguish it from other tax-exempt entities.

A 501(c)(19) Post or Organization of War Veterans (a “veterans’ organization”) is a post, organization, auxiliary unit, trust, or foundation composed of past or present members of the U.S. armed forces, no part of the net earnings of which inures to the benefit of any private individual. While 501(c)(19) entities in many ways resemble 501(c)(3) charities, there are several important distinctions. 

For example, veterans’ organizations are permitted to provide insurance benefits for their members and to conduct both social welfare activities and social and recreational activities among its members (all of which are prohibited under section 501(c)(3)). They are also legally permitted to lobby more than insubstantially and to engage in political campaign activity. 

While some veterans’ organizations are eligible to receive tax-deductible charitable contributions from individual donors, not all are permitted to do so without meeting additional requirements. This again distinguishes them from 501(c)(3) charities, all of which are automatically permitted to receive tax-deductible charitable contributions from donors.

In short, the IRS treats 501(c)(19) organizations differently from 501(c)(3) charities precisely because they have significantly more latitude in their operations than 501(c)(3) charities do. Donors typically prefer the assurance that their contributions will not be utilized for social, recreational, or political purposes, and such an assurance can only be obtained through an IRS certification of its status as a 501(c)(3). 

Therefore, programs available through TechSoup are provisioned with a strict focus on 501(c)(3) public charities per agreements with our donation partners. Organizations with other statuses simply fall outside of that scope.

Please note that many veterans’ organizations may also qualify for exemption under section 501(c)(3) as charitable organizations if they meet the requirements for exemption under that section. 

If you believe that your organization meets the requirements under section 501(c)(3), then we encourage you to seek exempt status as such with the IRS. Once you receive a determination letter from the IRS notifying you that your organization indeed meets the requirements under section 501(c)(3), we would be able to qualify your organization.