[jpdoctor]

> without (a) having to pay tax on them as income,

But that is my point: The expenses write off against the revenue in the biz, so there's no point in creating a separate org. There can't be sizeable income left in the separate org, or they get nailed for having assets.

> (b) having to follow the normal reporting requirements for political groups.

That's different, but I got the sense from the article that it was more about advertising than politics. FTA: In short, the IRS is concerned that some of these organizations exist simply to market companies' software, and perhaps the associated services sold alongside them.

[snowwrestler]

The tax issue actually goes the other way--individuals can take a personal tax deduction on most donations to 501c orgs, but not to for-profit companies.

[jpdoctor]

Aha, it's because they think their income will go up from donations of individuals? That makes more sense.