Election-Year Issues For 501(c)(3) Organizations: How You Can And Cannot Get Involved In The Political Process

• Jurisdiction: United States
• Date: 26 September 2012

The presidential election is less than 45 days away. Federal tax law strictly prohibits 501(c)(3) organizations from engaging in activities to support or oppose candidates for public office. However, there are still a number of ways that 501(c)(3)s can be involved in the political process without running afoul of the law. Unfortunately, the line between prohibited and permissible activities is murky and can be easily crossed if proper managers of the 501(c)(3) are not careful in how they plan and execute the activities. Now might be a good time to review the rules that will help stay on the right side of the line while involved in the process. If done correctly, 501(c)(3) organizations can:

Help register voters; Conduct get-out-the-vote activities; Publish voter guides; Create candidate questionnaires; Host candidate appearances; Host debates; Conduct issue advocacy; Allow leadership and staff to be politically active; and Create an affiliated organization to engage in political activities that it cannot. The key is to remember that these activities must be non-partisan, and not favor one candidate over another.

Prohibited Intervention

The Internal Revenue Code prohibits 501(c)(3) organizations from engaging in political campaign intervention. Political campaign intervention includes any direct or indirect activities in support of or opposition to any candidate for elective public office. The ban applies to elections at any level of government, whether federal, state, or local. This prohibits 501(c)(3) organizations from endorsing candidates or making other public statements of support or opposition to a candidate for office. Distributing – or even in some cases linking to – statements prepared by others that favor or oppose candidates for elective office also constitutes prohibited campaign intervention. Furthermore, a 501(c)(3) organization may not allow a candidate to use the organization's facilities, staff, or other resources (whether monetary or in-kind). This means that the organization's offices, computers, photocopiers, telephones, and other supplies and equipment should not be used for prohibited campaign activities, and that staff should not engage in prohibited campaign intervention during work time. Stiff consequences await organizations that violate the ban. The Internal Revenue Service (IRS) may deny or revoke the organization's exempt status, may impose excise taxes on the organization, and, in some cases, impose those...