Type Social welfare organizations Local associations of employees for charitable purposes Advantages Lobbying activities are unrestricted. Disadvantages Charitable contributions are not deductible by donors. There are no exemptions for FUTA, FICA, or state and local taxes. Earnings cannot inure to individuals. Foundation cannot participate in political activities.
Postal rates are less favorable.
Under the Hatch Act, unions of federal government employees may not engage in political activities. Disadvantage Charitable contributions are not deductible by donors. No exemptions are available for FUTA, FICA or state and local taxes. Earnings cannot inure to individuals. Postal rates are less favorable.