So there's a law that states "exclusively for social welfare" and there's a law that says its okay to participate in non-social welfare activities? The laws sound contradictory to me and it seems like the IRS has a pretty good justification for their interpretation. Either way, whatever they rules are they should apply equally to all people/organizations.
As an aside, I wonder if you could make the legal argument that political donations are considered social welfare? If planned parenthood can call giving out birth control social welfare, then why can't it call advocating for the availability of free birth control social welfare? If advocating for the availability of free birth control is social welfare and political donations are covered by free speech, then why isn't giving political donations to candidates that support the availability of free birth control considered social welfare?
> Spurred by such concerns over unfair competition and lost revenue, Congress enacted the UBIT. It taxed any trade or business regularly carried on by Section 501(c) organizations if the activity is not related—aside from the need for funding—to the organization’s exempt purpose.
As an aside, I wonder if you could make the legal argument that political donations are considered social welfare? If planned parenthood can call giving out birth control social welfare, then why can't it call advocating for the availability of free birth control social welfare? If advocating for the availability of free birth control is social welfare and political donations are covered by free speech, then why isn't giving political donations to candidates that support the availability of free birth control considered social welfare?