Tax Deductibility Information

Section 501(c)(3) of the US Internal Revenue Code allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations. These organizations are regulated by the US Department of Treasury through the Internal Revenue Service.

Citizens Utility Board of Wisconsin, Inc. is a 501(c)(3) nonprofit corporation approved by the Internal Revenue Service as a tax-exempt, charitable organization. One important aspect of a 501(c)(3) organization is the tax deductibility of donations for federal income tax purposes by its donors.

Like federal law, Wisconsin allows for deductibility for state income tax purposes. 501(c)(3) organizations in Wisconsin are exempt from sales tax on purchases and property taxes. Special nonprofit, bulk-rate postage discounts are available from the Post Office to organizations like CUB.

501(c)(3) organizations are highly regulated. Strict rules apply to both their activities and governance. No activities or net earnings can benefit any director, officer, or any private individual, and no officer or private individual can share in the distribution of any of corporate assets should the organization close.

There are limits to the amount of lobbying, propaganda or other legislative activity performed by 501(c)(3) organizations. Involvement in political campaigns, including the endorsement/anti-endorsement of candidates for public office, is strictly prohibited.