Are HOAs Nonprofit? Get IRS 501(c)(4) Compliance Guide
Understanding 501(c)(4) Status for HOAs Many homeowners associations (HOAs) wonder if they can obtain non-profit status under IRS code 501(c)(4). This designation offers potential tax advantages, but achieving it requires meeting specific criteria. The key lies in demonstrating that your HOA's primary activities benefit the broader community, not just its members. This means your HOA's actions must demonstrably improve the surrounding area beyond the needs of just your residents. The IRS carefully reviews this, ensuring the community, not just the HOA members, receives the primary benefit....