The American Benefits Council (the Council) is a national trade association based in Washington, D.C. that advocates for employer-sponsored benefit plans. The Council's members represent the private employee benefits community and either sponsor directly or provide services to retirement and health benefit plans both nationally and internationally.
90-418: The Council advocates for legislation and regulations in support of the employment-based benefits system, The Council also serves as a technical resource on benefits issues for lawmakers, the media and other industry trade associations. The Council frequently works with other public policy organizations to develop a collective business community position about benefits issues. The Council was originally known as
180-456: A federal court decision in 2018. The origins of 501(c)(4) organizations date back to the Revenue Act of 1913 , which created a new group of tax-exempt organizations dedicated to social welfare in a precursor to what is now Internal Revenue Code Section 501(c)(4). The Protecting Americans from Tax Hikes Act of 2015 introduced a new requirement on 501(c)(4) organizations. Within 60 days of
270-513: A 501(c)(5) organization, that expressly advocates for the election or defeat of a particular political candidate and spends more than $ 250 during a calendar year must disclose the name of each person who contributed more than $ 200 during the calendar year to the Federal Election Commission . The Federal Election Commission is required to enforce this provision based on a federal court decision in 2018. A 501(c)(6) organization
360-419: A 501(c)(6) organization to raise and distribute over $ 250 million during the 2012 election campaigns without disclosing its donors. The group's existence was not publicly known until nearly a year after the election. A business's membership dues paid to a 501(c)(6) organization are generally an ordinary and necessary business expense. The membership dues are tax-deductible in full unless a substantial part of
450-515: A Clinton-sponsored health care overhaul. Comprehensive health care reform in the United States was not seriously considered or enacted by Congress until Barack Obama's election in 2008, and the U.S. remains the only developed country without universal health care. In 2004, as a US senator from New York, Hillary Clinton argued in The New York Times that the current health care system
540-575: A Congressional leader on the issue." Until the Affordable Healthcare for America Act , a combination of factors kept health care off the top of the agenda. For example, politicians were not eager to confront the forces that successfully frustrated the Clinton effort, health maintenance organizations were able to limit cost increases to some extent, and a conservative Republican majority in Congress or
630-423: A National Health Board to oversee the quality of health care services; enhanced physician training; the creation of model information systems; federal funding in the case of the insolvency of state programs; rural health programs; long-term care programs; coverage for abortions, with a "conscience clause" to exempt practitioners with religious objections; malpractice and antitrust reform; fraud prevention measures; and
720-414: A club of individuals, and no individual may derive profit from the organization's net earnings. Examples include college alumni associations ; college fraternities or college sororities operating chapter houses for students; country clubs ; amateur sport clubs ; supper clubs that provide a meeting place, library, and dining room for members; hobby clubs ; and garden clubs . A substantial amount of
810-496: A conservative Republican president was in power or in office. The Clinton health care plan remains the most prominent national proposal associated with Hillary Clinton and may have influenced her prospects in the 2008 presidential election. There were some similarities between Clinton's plan and Republican Mitt Romney 's health care plan, which had been implemented in Massachusetts, though Romney distanced himself from Clinton on
900-405: A filibuster." A few weeks later, Mitchell announced that his compromise plan was dead and that health care reform would have to wait at least until the next Congress. The defeat was embarrassing for the administration, emboldened Republicans, and contributed to the notion that Hillary Clinton was a "big-government liberal" as decried by conservative opponents. The 1994 mid-term election became, in
990-621: A joint session of Congress on September 22, 1993. In that speech, he explained the problem: Millions of Americans are just a pink slip away from losing their health insurance, and one serious illness away from losing all their savings. Millions more are locked into the jobs they have now just because they or someone in their family has once been sick and they have what is called the preexisting condition . And on any given day, over 37 million Americans—most of them working people and their little children—have no health insurance at all. And in spite of all this, our medical bills are growing at over twice
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#17328553571051080-663: A middle-class couple despairing over the plan's complex, bureaucratic nature. Time , CBS News , CNN , The Wall Street Journal , and The Christian Science Monitor ran stories questioning whether there really was a health care crisis. Op-eds were written against it, including one in The Washington Post by conservative University of Virginia Professor Martha Derthick that said, In many years of studying American social policy, I have never read an official document that seemed so suffused with coercion and political naivete... with its drastic prescriptions for controlling
1170-476: A new task force and sell the plan to the American people, which ultimately backfired amid the barrage from the pharmaceutical and health insurance industries and considerably diminished her own popularity. On September 26, 1994, the final compromise Democratic bill was declared dead by Senate majority leader George J. Mitchell . According to an address to Congress by then-President Bill Clinton on September 22, 1993,
1260-773: A number of other pieces of legislation. During the development of the Pension Protection Act (PPA) , Council members testified before the House Education and the Workforce Committee on March 2, 2005, before the House Ways and Means Subcommittee on Select Revenue Measures on March 8, 2005 and before the Senate House, Education, Labor and Pensions (HELP) Committee on April 26, 2005. The council discussed regulation of swaps as they relate to pension plan investments during
1350-561: A panoply of advisory boards, panels, and councils, interlaced with the expanded operations of the agencies of Department of Health and Human Services and the Department of Labor, issuing innumerable rules, regulations, guidelines, and standards." The effort also included extensive advertising criticizing the plan, including the famous " Harry and Louise " ad, paid for by the Health Insurance Association of America, which depicted
1440-461: A prescription drug benefit for Medicare, among other features. Once in office, Bill Clinton quickly set up the Task Force on National Health Care Reform, headed by First Lady Hillary Clinton , to come up with a comprehensive plan to provide universal health care for all Americans, which was to be a cornerstone of the administration's first-term agenda. He delivered a major health care speech to
1530-747: A primary benefactor of this organization type, dating to the 19th century. According to the Internal Revenue Service, a 501(c)(5) organization has a duty of providing service to its members first. The organization's benefits may not inure to a specific member, but the rules for inurement vary among the three different types of organizations under this segment. A 501(c)(5) organization can make unlimited corporate, individual, or union contributions. A labor organization may pay benefits to its members because paying benefits improves all members' shared working conditions. An agricultural organization can provide financial assistance to its members in order to improve
1620-417: A public charity's activities can go to lobbying, charities may register for a 501(h) election allowing them to lawfully conduct lobbying activities as long as their financial expenditure does not exceed a specified amount. 501(c)(3) organizations risk loss of tax exempt status if any of these rules are violated. A 501(c)(3) organization is allowed to conduct some or all of its charitable activities outside
1710-465: A set income level. Users would choose plans offered by regional health alliances to be established by each state. These alliances would purchase insurance coverage for the state's residents and could set fees for doctors who charge per procedure. The act provided funding to be sent to the states for the administration of the plan, beginning at $ 14 billion in 1993 and reaching $ 38 billion by 2003. The plan specified which benefits must be offered;
1800-446: A specific type of business is also not typically qualifying, as that would usually be more of a commercial enterprise. For example, the service of managing health insurance plans for its member businesses is often a commercial enterprise if it is not substantially related to improving the business conditions for specific lines of businesses. An association that promotes the common interests of certain hobbyists would not qualify because
1890-463: A substantial number of these activities, then only the amount of dues or contributions that can be attributed to other activities may be deductible as a business expense. The organization must provide a notice to its members containing a reasonable estimate of the amount related to lobbying and political campaign expenditures, or else it is subject to a proxy tax on its lobbying and political campaign expenditures. It must also state that contributions to
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#17328553571051980-590: A whole, however, the organization will generally qualify if it also performs other services for its members. Much like 501(c)(4) and 501(c)(5) organizations, 501(c)(6) organizations may also perform some political activities. 501(c)(6) organizations are allowed to attempt to influence legislation that is related to the common business interests of its members. A 501(c)(6) organization may receive unlimited contributions from corporations, individuals, and labor unions. The names and addresses of contributors are not required to be made available for public inspection, with
2070-553: Is a business league, a chamber of commerce like the U.S. Chamber of Commerce , a real estate board, a board of trade, a professional football league or an organization like the Edison Electric Institute and the Security Industry Association , that are not organized for profit and no part of the net earnings goes to the benefit of any private shareholder or individual. A business league may qualify if it
2160-643: Is a social welfare organization, such as a civic organization or a neighborhood association . An organization is considered by the IRS to be operated exclusively for the promotion of social welfare if it is primarily engaged in promoting the common good and general welfare of the people of the community. Net earnings must be exclusively used for charitable, educational, or recreational purposes. According to The Washington Post , 501(c)(4) organizations: ...are allowed to participate in politics, so long as politics do not become their primary focus. What that means in practice
2250-442: Is an association of persons having a common business interest, whose purpose is to promote the common business interest and whose activities improve business conditions rather than actually conduct the business itself. Members of the organization must be of the same trade, business, occupation, or profession in order to qualify. A local chamber of commerce or board of trade could qualify for similar reasons except that they may promote
2340-402: Is not required to send the notification if the organization was formed on or before July 8, 2016, and it either applied for a determination letter using Form 1024 or filed a Form 990 between December 19, 2015, and July 8, 2016. As of January 2018, the application for recognition of exemption as a 501(c)(4) organization is a new form, Form 1024-A, rather than Form 1024. Between 2010 and 2017,
2430-683: Is operated by a Board of Directors, whose executive members make decisions concerning the public policy positions of the Council. The Advisory Council consists of additional Council members who participate in Board meetings as well as in dialogue on policy issues but do not vote on Council policies. Previous Chairs of the Board have been representatives of employer plan sponsors, including The Dow Chemical Company , Cigna and FedEx , as well as of consulting firms and financial institutions such as Mercer , Willis North America , Fidelity and Vanguard . The Council
2520-612: Is organized and operated exclusively for those purposes. There are also supporting organizations—often referred to in shorthand form as "Friends of" organizations. 26 U.S.C. § 170 , provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501(c)(3) organizations, among others. The IRS explains that to be tax-exempt, "an organization must be organized and operated exclusively for exempt purposes ... and none of its earnings may inure to any private shareholder or individual." Private inurement means that
2610-562: Is related to its purpose. A 501(c)(4) organization may directly or indirectly support or oppose a candidate for public office as long as such activities are not a substantial amount of its activities. A 501(c)(4) organization that lobbies must register with the Clerk of the House if it lobbies members of the House or their staff. Likewise, a 501(c)(4) organization must register with the Secretary of
2700-402: Is related to the common union interests of its members. 501(c)(5) organizations can receive unlimited contributions from corporations, individuals, and labor unions. The names and addresses of contributors are not required to be made available for public inspection. All other information, including the amount of contributions, the description of noncash contributions, and any other information,
2790-418: Is required to be made available for public inspection unless it clearly identifies the contributor. A union membership dues paid to a 501(c)(5) organization are generally an ordinary and necessary business expense. The membership dues are tax-deductible in full unless a substantial part of the 501(c)(5) organization's activities consists of political activity, in which case a tax deduction is allowed only for
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2880-524: Is that they must spend less than 50 percent of their money on politics. So long as they don't run afoul of that threshold, the groups can influence elections, which they typically do through advertising. 501(c)(4)s are similar to 501(c)(5)s and 501(c)(6)s in that the organizations may inform the public on controversial subjects and attempt to influence legislation relevant to its program. Unlike 501(c)(3) organizations, they may also participate in political campaigns and elections, as long as their primary activity
2970-591: Is the promotion of social welfare and related to the organization's purpose. The income tax exemption for 501(c)(4) organizations applies to most of their operations, but income spent on political activities—generally the advocacy of a particular candidate in an election—is taxable. An "action" organization generally qualifies as a 501(c)(4) organization. An "action" organization is one whose activities substantially include, or are exclusively, direct or grassroots lobbying related to advocacy for or against legislation or proposing, supporting, or opposing legislation that
3060-400: Is unsustainable, and she offered several solutions. Her article also mentioned areas of agreement with onetime opponent Newt Gingrich, and likewise Gingrich has expressed agreement with Clinton on some aspects of health care, including a bill to modernize medical record keeping. In 2005, referring to her previous efforts at health care reform, she said, "I learned some valuable lessons about
3150-527: Is widely credited with orchestrating the plan's defeat through a series of now legendary "policy memos" faxed to Republican leaders. It [the Clinton healthcare plan] will revive the reputation of the party that spends and regulates, the Democrats, as the generous protector of middle-class interests. And it will at the same time strike a punishing blow against Republican claims to defend the middle class by restraining government. Conservatives , libertarians , and
3240-694: The Recommendation Clause in Article II of the US Constitution would make it unconstitutional to apply the procedural requirements of FACA to her participation in the meetings of the Task Force. Some constitutional experts argued to the court that such a legal theory was not supported by the text, the history, or the structure of the Constitution. Ultimately, Hillary Clinton won the litigation in June 1993, when
3330-480: The health insurance industry proceeded to campaign against the plan, criticizing it as being overly bureaucratic and restrictive of patient choice. The Heritage Foundation argued that "the Clinton Administration is imposing a top-down, command-and-control system of global budgets and premium caps, a superintending National Health Board and a vast system of government sponsored regional alliances, along with
3420-439: The 1914 Clayton Antitrust Act or the 1914 Federal Trade Commission Act . IRC 501(c)(6) amendment was enacted in 1966 to ensure that a professional football league's exemption would not be jeopardized because it administered a players' pension fund. Additionally, a professional sports league's exemption is not to be jeopardized because its primary source of revenue is the sale of television broadcasting rights to its games because
3510-436: The 2012 election season. Every organization, including a 501(c)(4) organization, that expressly advocates for the election or defeat of a particular political candidate and spends more than $ 250 during a calendar year must disclose the name of each person who contributed more than $ 200 during the calendar year to the Federal Election Commission . The Federal Election Commission is required to enforce this provision based on
3600-457: The 501(c)(6) organization's activities consists of political activity, in which case a tax deduction is allowed only for the portion of membership dues that are for other activities. Every organization, including a 501(c)(6) organization, that expressly advocates for the election or defeat of a particular political candidate and spends more than $ 250 during a calendar year must disclose the name of each person who contributed more than $ 200 during
3690-546: The 501(c)(7) organization's activities must be related to social and recreational activities for its members. No more than 35 percent of its gross receipts may derive from non-members, and no more than 15 percent of its gross receipts is permitted to come from use of its facilities or services by the general public. An organization that exceeds these limits may lose its 501(c)(7) status. Health Security Act [REDACTED] [REDACTED] The Clinton health care plan of 1993 , colloquially referred to as Hillarycare ,
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3780-477: The 990 form. 501(c)(3) tax-exemptions apply to entities that are organized and operated exclusively for religious , charitable , scientific , literary , or educational purposes; or for testing for public safety, to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals . The 501(c)(3) exemption also applies for any unincorporated community chest , fund, cooperating association , or foundation that
3870-515: The Association of Private Pension and Welfare Plans (APPWP) until September 2000. It was founded in February 1967 by a group of executives in employee benefit consulting firms, plan sponsors and financial institutions. Its original purpose was to monitor public policy as it related to employee benefits. In 1978, APPWP became a 501(c)(6) organization and began to include advocacy in its activities after
3960-471: The Council. The Institute convenes meetings and sponsors research that assist public policy makers, the media and other stakeholders in making informed decisions about employee benefits policy matters. The Institute is also the principal venue where Council members discuss global benefits policy issues and share information about international health and retirement plan and compensation practices. The Institute provides information about benefit practices outside
4050-522: The D.C. Circuit ruled narrowly that the First Lady could be deemed a government official (and not a mere private citizen) for the purpose of not having to comply with the procedural requirements of FACA. Also in February 1993, the Association of American Physicians and Surgeons , along with several other groups, filed a lawsuit against Hillary Clinton and Donna Shalala over closed-door meetings related to
4140-453: The Form 990-EZ or Form 990-PF) must be available for public inspection and photocopying at the offices of the exempt organization, through a written request and payment for photocopies by mail from the exempt organization, or through a direct Form 4506-A "Request for Public Inspection or Copy or Political Organization IRS Form" request to the IRS of for the past three tax years. Form 4506-A also allows
4230-1006: The IRS Publication 557, in the Organization Reference Chart section, the following is an exact list of 501(c) organization types (29 in total) and their corresponding descriptions. Under Section 511, a 501(c) organization is subject to tax on its " unrelated business income ", whether or not the organization actually makes a profit, but not including selling donated merchandise or other business or trade carried on by volunteers, or certain bingo games. Disposal of donated goods valued over $ 2,500, or acceptance of goods worth over $ 5,000 may also trigger special filing and record-keeping requirements. Tax exemption does not excuse an organization from maintaining proper records and filing any required annual or special-purpose tax returns , e.g., 26 U.S.C. § 6033 and 26 U.S.C. § 6050L . Prior to 2008, an annual return
4320-423: The Internal Revenue Service does not consider hobbies to be activities conducted as businesses. An organization whose primary activity is advertising the products or services of its members does not qualify because the organization is performing a service for its members rather than promoting common interests. If an organization's primary activity is advertising the products or services of its members' industry as
4410-642: The International Employee Benefits Association (IEBA). The Council examines a wide variety of benefits issues, in particular employee retirement and health benefits. Specific issues include defined contribution/401(k) plans , defined benefit pension plans , retiree health programs, health care reform under the Patient Protection and Affordable Care Act (PPACA) , consumer-directed plans ( HSAs / FSAs / HRAs ), wellness programs and executive compensation. The American Benefits Council
4500-668: The President's original proposal, other Democrats offered a number of competing plans of their own. Some criticized the plan from the left, preferring a single-payer healthcare system. The First Lady's role in the secret proceedings of the Health Care Task Force also sparked litigation in the U.S. Court of Appeals for the D.C. Circuit in relation to the Federal Advisory Committee Act (FACA), which requires openness in government. The Clinton White House argued that
4590-552: The Senate if it lobbies members of the Senate or their staff. In addition, the 501(c)(4) organization must either inform its members the amount it spends on lobbying or pay a proxy tax to the Internal Revenue Service. Lobbying expenses and political expenses are not deductible as business expenses. The use of 501(c)(4), 501(c)(5), and 501(c)(6) organizations has been affected by the 2007 case FEC v. Wisconsin Right to Life, Inc. , in which
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#17328553571054680-492: The Senate, including several insurance companies that were members of the Health Insurance Association of America that helped defeat the Clinton Health Plan in 1994. Charles N. Kahn III , a Republican who was executive vice president of the Health Insurance Association in 1993 and 1994, refers to his previous battles with Clinton as "ancient history", and says "she is extremely knowledgeable about health care and has become
4770-548: The Supreme Court struck down the part of the McCain-Feingold Act that prohibited 501(c)(4)s, 501(c)(5)s, and 501(c)(6)s from broadcasting electioneering communications. The Act defined an electioneering communication as a communication that mentions a candidate's name 60 days before a primary or 30 days before a general election. Contributions to 501(c)(4) organizations are not tax-deductible as charitable donations unless
4860-553: The United States and informs non-U.S. based companies about employee benefits policy and legislative and regulatory developments in the United States. The Council prepares or sponsors research papers and surveys on employer-sponsored benefits. Recent publications include: 501(c)(6) A 501(c) organization is a nonprofit organization in the federal law of the United States according to Internal Revenue Code (26 U.S.C. § 501(c)). Such organizations are exempt from some federal income taxes . Sections 503 through 505 set out
4950-404: The United States. Donors' contributions to a 501(c)(3) organization are tax-deductible only if the contribution is for the use of the 501(c)(3) organization, and that the 501(c)(3) organization is not merely serving as an agent or conduit of a foreign charitable organization. Additional procedures are required of 501(c)(3) organizations that are private foundations . A 501(c)(4) organization
5040-411: The basis that Magaziner and the administration had not acted in bad faith. In August 1994, Democratic Senate Majority Leader George J. Mitchell introduced a compromise proposal that would have delayed requirements of employers until 2002 and exempted small businesses. However, "even with Mitchell’s bill, there were not enough Democratic Senators behind a single proposal to pass a bill, let alone stop
5130-536: The broadcasting of games increases public awareness of the sport. In 2013, Senator Tom Coburn introduced legislation to disallow a tax exemption for the National Football League , the Professional Golfers' Association of America , and other professional sports organizations. Coburn estimated the tax exemption cost $ 100 million, but he said he could not get other members of Congress to support
5220-600: The calendar year to the Federal Election Commission . The Federal Election Commission is required to enforce this provision based on a federal court decision in 2018. The predecessor of IRC 501(c)(6) was enacted as part of the Revenue Act of 1913 likely due to a U.S. Chamber of Commerce request for an exemption for nonprofit "civic" and "commercial" organizations, which resulted in IRC 501(c)(4) for nonprofit "civic" organizations and IRC 501(c)(6) for nonprofit "commercially-oriented" organizations. The Revenue Act of 1928 amended
5310-408: The common economic interests of all the commercial enterprises in a given trade or community. In order to qualify for a tax-exemption under section 501(c)(6), the organization must specify that it seeks to promote and improve business condition for a specific type of business. Improving business conditions for all types of businesses is not generally qualifying. Similarly, providing a service for
5400-725: The conditions of those engaged in agricultural pursuits generally. Members can benefit in incidental ways from the organization's exempt activities as long as the benefits are available to all persons. The first exemption for labor organizations from corporate income tax was enacted as part of the Payne–Aldrich Tariff Act of 1909 . The Revenue Act of 1913 excluded "labor, agricultural, or horticultural organizations" from income tax liability. Much like 501(c)(4) and 501(c)(6) organizations, 501(c)(5) organizations may also perform some political activities. 501(c)(5) organizations are allowed to attempt to influence legislation that
5490-427: The conduct of state governments, employers, drug manufacturers, doctors, hospitals and you and me. Democratic Senator Daniel Patrick Moynihan qualified his agreement that "there is no health care crisis" by stating "there is an insurance crisis" but also indicated "anyone who thinks [the Clinton health care plan] can work in the real world as presently written isn't living in it." Meanwhile, instead of uniting behind
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#17328553571055580-754: The development of the Dodd-Frank Wall Street Reform and Consumer Protection Act . Council members spoke out against the Patients’ Bill of Rights and the Health Security Act ; these bills did not pass. The council was also vocal about the Consolidated Omnibus Budget Reconciliation Act of 1985 , HIPAA , the Tax Act of 1986, ERISA , EGTRRA . The American Benefits Institute is the education and research affiliate of
5670-421: The exception of a 501(c)(6) organization that makes independent expenditures . All other information, including the amount of contributions, the description of non-cash contributions, and any other information, is required to be made available for public inspection unless it clearly identifies the contributor. The U.S. Chamber of Commerce is a large political spender, and Freedom Partners used its status as
5760-410: The exclusively religious activities of any religious order; and religious organizations; and most organizations whose annual gross receipts are less than $ 5,000. Failure to file such timely returns and to make other specific information available to the public also is prohibited. Between 2010 and 2017 the IRS revoked the nonprofit status of more than 760,000 nonprofit organizations for failing to file
5850-508: The formation of the Task Force, media began to criticize the secrecy surrounding its deliberations, eventually leading to a public disclosure of the names of those involved. Starting on September 28, 1993, Hillary Clinton appeared for several days of testimony before five congressional committees on health care. Opponents of the bill organized against it before it was presented to the Democratic -controlled Congress on November 20, 1993. The bill
5940-462: The health care plan. The AAPS sued to gain access to the list of members of the task force. In 1997, Judge Royce C. Lamberth found in favor of the plaintiffs and awarded $ 285,864 to the AAPS for legal costs; Lamberth also harshly criticized the Clinton administration and Clinton aide Ira Magaziner in his ruling. Subsequently, in 1999, a federal appeals court overturned the award and the initial findings on
6030-417: The issue, in particular arguing that his plan called for more control at the state level and the private market, not from the federal government. In September 2007, former Clinton Administration senior health policy advisor Paul Starr published an article, "The Hillarycare Mythology", and he wrote that Bill, not Hillary, was the driving force behind the plan at all stages of its origination and development;
6120-573: The law both during Congressional debate and afterward, helping to produce the best possible legislation. President James Klein testified before the U.S. Senate Finance Committee on May 12, 2009 on financing health care reform and again before the U.S. House of Representatives Committee on Education and Labor on June 23, 2009 on the Tri-Committee (Education and Labor, Ways and Means and Energy and Commerce committees) Draft Proposal for Health Care Reform. The Council also contributed to and/or influenced
6210-460: The legislation. A 501(c)(7) organization is a social or recreational club that is organized for pleasure, recreation, and other nonprofitable purposes. Members must share interests and have a common goal directed toward pleasure and recreation, and the organization must provide opportunities for personal contact among members. The organization's facilities and services must be open to its members and their guests only. The organization must be
6300-496: The legislative process, the importance of bipartisan cooperation and the wisdom of taking small steps to get a big job done." Again in 2007, she reflected on her role in 1993–1994: "I think that both the process and the plan were flawed. We were trying to do something that was very hard to do, and we made a lot of mistakes." She received hundreds of thousands of dollars in campaign contributions from doctors, hospitals, drug companies, and insurance companies for her 2006 re-election in
6390-511: The number of 501(c)(4) organizations dropped from almost 140,000 to fewer than 82,000. In 2017 revocations of 501(c)(4) groups comprised 58% which usually is only 15% of the total nonprofits which have their tax status revoked by the IRS for their failure to file Form 990. A 501(c)(5) organization is a labor organization, an agricultural organization, or a horticultural organization. Labor unions, county fairs, and flower societies are examples of these types of groups. Labor union organizations were
6480-505: The opinion of one media observer, a "referendum on big government – Hillary Clinton had launched a massive health-care reform plan that wound up strangled by its own red tape". In that 1994 election, the Republican revolution , led by Newt Gingrich , gave the GOP control of both the House of Representatives and the Senate for the first time since the 83rd Congress of 1953–1954, ending prospects for
6570-720: The organization are not deductible as charitable contributions during fundraising. A 501(c)(4) organization is not required to disclose their donors publicly, with the exception of organizations that make independent expenditures as of 2018. The former complete lack of disclosure led to extensive use of the 501(c)(4) provisions for organizations that are actively involved in lobbying , and has become controversial. Criticized as " dark money ", spending from these organizations on political advertisements has exceeded spending from Super PACs . Spending by organizations that do not disclose their donors increased from less than $ 5.2 million in 2006 to well over $ 300 million during
6660-400: The organization is either a volunteer fire department or a veterans organization. Dues or contributions to 501(c)(4) organizations may be deductible as a business expense under IRC 162, although amounts paid for intervention or participation in any political campaign, direct lobbying, grass roots lobbying, and contact with certain federal officials are not deductible. If a 501(c)(4) engages in
6750-409: The organization's assets must not unduly benefit a person. Organizations described in section 501(c)(3) are prohibited from conducting political campaign activities to intervene in elections to public office. On the other hand, public charities (but not private foundations) may conduct a limited amount of lobbying to influence legislation. Although the law states that "No substantial part..." of
6840-414: The organization's formation, a 501(c)(4) organization is required to file Form 8976 with the Internal Revenue Service as notification that it is operating as a section 501(c)(4) organization. The Internal Revenue Service will acknowledge receipt of the notification, but the acknowledgment is not a determination that the organization qualifies for section 501(c)(4) tax-exempt status. A 501(c)(4) organization
6930-711: The passing of ERISA. The Council has been part of a number of coalitions focused on employer-sponsored benefits, including the Global Pension Coalition, the Employers' Coalition on Medicare (ECOM), How America Saves: The Coalition to Protect Retirement, the Consumer-Purchaser Alliance and the National Coalition on Benefits. The Council has an ongoing partnership with the MetLife Symposium and
7020-406: The plan was heavy from conservatives , libertarians , and the health insurance industry. The industry produced a highly effective television ad, " Harry and Louise ", in an effort to rally public support against the plan. Instead of uniting behind the original proposal, many Democrats offered a number of competing plans of their own. Hillary Clinton was drafted by the Clinton administration to head
7110-418: The portion of membership dues that are for other activities. Because associations involved in fishing and seafood harvesting were having difficulties qualifying for reduced postal rates, in 1976 Congress established Internal Revenue Code Section 501(5) to define "agriculture" as the art or science of cultivating land, harvesting crops or aquatic resources, or raising livestock. Every organization, including
7200-577: The proposed bill would provide a "health care security card" to every citizen that would irrevocably entitle them to medical treatment and preventative services, including for pre-existing conditions. To achieve this, the Clinton health plan required each US citizen and permanent resident alien to become enrolled in a qualified health plan on his or her own or through programs mandated to be offered by businesses with more than 5,000 full-time employees. Subsidies were to be provided to those too poor to afford coverage, including complete subsidies for those below
7290-508: The public inspection or photocopying access to Form 1023 "Application for Recognition of Exemption" or Form 1024, Form 8871 "Political Organization Notice of Section 527 Status", and Form 8872 "Political Organization Report of Contribution and Expenditures". Internet access to many organizations' 990 and some other forms are available through GuideStar . Certain organizations are exempt from filing Form 990, such as churches, their integrated auxiliaries, and conventions or associations of churches;
7380-442: The rate of inflation, and the United States spends over a third more of its income on health care than any other nation on Earth. Her leading role in the project was unprecedented for a presidential spouse. This unusual decision by the president to put his wife in charge of the project has been attributed to several factors, such as his desire to emphasize his personal commitment to the enterprise. After President Clinton announced
7470-560: The requirements for obtaining such exemptions. Many states refer to Section 501(c) for definitions of organizations exempt from state taxation as well. 501(c) organizations can receive unlimited contributions from individuals, corporations , and unions . For example, a nonprofit organization may be tax-exempt under section 501(c)(3) if its primary activities are charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, or preventing cruelty to children or animals . According to
7560-455: The statute to include real estate boards. In 1966, professional football leagues were added to the described organizations. The Revenue Act of 1913 related to professional football leagues had both antitrust and tax provisions: The antitrust provision was enacted to permit the merger of the National and American Football Leagues to go forward without fear of an antitrust challenge under either
7650-476: The task force headed by her quickly became useless and was not the primary force behind formulating the proposed policy; and "[n]ot only did the fiction of Hillary's personal responsibility for the health plan fail to protect the president at the time, it has also now come back to haunt her in her own quest for the presidency." If I were advising Sen. Clinton, I would be urging her to boast that her approach to health-care reform enjoys support from conservatives like
7740-578: Was a complex proposal of more than 1,000 pages, the core element of which was an enforced mandate for employers to provide health insurance coverage to all of their employees. The full text of the November 20 bill (the Health Security Act) remains publicly available. Prominent opposition to the Clinton plan was led by William Kristol and his policy group Project for the Republican Future, which
7830-487: Was active during the development of President Obama ’s healthcare reform bill, the Patient Protection and Affordable Care Act (PPACA) . The Council published a set of proposals on reforming health care quality, cost and coverage and met with members of Congress and presidential transition team officials in January of 2009, shortly before President Obama’s inauguration. Council members continued to point out various consequences of
7920-475: Was an American healthcare reform package proposed by the Bill Clinton administration and closely associated with the chair of the task force devising the plan, first lady Hillary Clinton . Bill Clinton had campaigned heavily on health care in the 1992 United States presidential election . The task force was created in January 1993 but its own processes were somewhat controversial and drew litigation. Its goal
8010-858: Was not generally required from an exempt organization accruing less than $ 25,000 in gross income yearly. Since 2008, most organizations whose annual gross receipts are less than $ 50,000 must file an annual information return known as Form 990-N . Form 990-N must be submitted electronically using an authorized IRS e-file provider. Form 990, Form 990-EZ, and Form 990-PF may be filed either by mail or electronically through an authorized e-file provider. Failure to file required returns such as Form 990 (Return of Organization Exempt From Income Tax) may result in fines of up to $ 250,000 per year. Exempt or political organizations, excluding churches or similar religious entities, must make their returns, reports, notices, and exempt applications available for public inspection. The organization's Form 990 (or similar such public record as
8100-451: Was to come up with a comprehensive plan to provide universal health care for all Americans, which was to be a cornerstone of the administration's first-term agenda. The president delivered a major health care speech to the U.S. Congress in September 1993, during which he proposed an enforced mandate for employers to provide health insurance coverage to all of their employees. Opposition to
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