There are many different types of civic organizations in the United States, including charities, welfare organizations, labor unions, business unions, and political organizations.
The budgets of community organizations can be in the thousands or billions of dollars, depending on their size and scope of work. Most civic organizations build their budgets through fundraising. Funding for civic organizations comes from a number of sources: private donations, membership fees, sales of goods and services, and grants from international agencies or governments.
Non-profit organizations devoting their resources to charitable, religious or educational purposes are eligible to claim tax exemption under Section 501(C)(3) of the Internal Revenue Code. These organizations can engage in a wide range of advocacy issues, but they are restricted from lobbying and are prohibited from engaging in any political activity, whether on behalf of or against a candidate for public office.
Community-based organizations that do not wish to have their lobbying activities restricted may register as social welfare organizations under section 501(C)(4) of the Internal Revenue Code. Donors’ donations to such organizations are not exempt from taxation. Moreover, these organizations may engage in partisan political campaigning, but only as a secondary activity.
Different levels of government also provide funding to community-based organizations, especially those involved in service delivery. For example, the government in the United States funds a variety of services for victims of domestic violence, such as transitional housing, counseling, and a domestic violence hotline.
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International human rights organizations such as Human Rights Watch, with five offices in the United States, and Amnesty International, with six offices in the United States, publish reports on the human rights situation in the United States. An individual does not need to be a U.S. citizen to register an NGO in the United States. Registration requirements vary from state to state, but no government permission is required to register an organization. Foreign-funded organizations have no special restrictions on their activities. They can hold meetings and publish materials in free form. They do not have to report to the federal authorities, as long as they pay taxes properly. Organizations have the right to receive funding from abroad and work with foreign governments to achieve their goals. Organizations are not required to report on outreach, hiring, and staffing to the authorities, and the authorities do not seek to influence foreign-funded representations. However, foreign nationals cannot fund political campaigns or parties unless those nationals are “lawful permanent residents.
People often ask whether foreign NGOs work in the U.S. and whether American NGOs receive funding from abroad. The answer to both questions is yes. Foreign civil society organizations working in the United States range from the German Goethe Institute, which promotes German and German studies abroad and encourages international cultural exchanges, to the network of Confucius Institutes, which provides information on Chinese education, culture, economy and society. Another example is the Hitachi Foundation, based in Japan, which focuses on strengthening communities in the U.S. through programs such as the Business and Jobs program aimed at improving the lives of underserved Americans. Since 2007, the European Instrument for Democracy and Human Rights (EIDHR) has supported key lobbying actions in favor of abolishing the death penalty in Illinois and Maryland. The European Commission acts as one of the largest donors of development projects in the world, and dozens of American civil society organizations submit project proposals to the European Commission for funding. All of Germany’s party institutes also work on U.S. territory.
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