Election Involvement
by Section 501(c)(3)
Organizations,
Including Churches
In This Session
• Background and description of
prohibition against political
campaign intervention by
501(c)(3) exempt organizations
• Scenarios illustrating political
campaign intervention
• IRS initiatives - past, present and
future
The Political Campaign
Activities Prohibition
• Law since 1954 – strengthened in
1987
• Applies to 501(c)(3) organizations,
but not other exempt organizations
• Does not apply to lobbying
• Not a “freedom of speech or
religion” issue
What is Political
Campaign Intervention?
• No “bright line” test in the Code
• IRS interprets laws, regulations,
and court cases
• IRS examiners apply “facts and
circumstances” tests
• Prohibition covers more than just
express endorsements or
contributions of money
Voter Education, Voter
Registration, Get-Out-the-
Vote Drives
• May be legitimate exempt activity
• Must be conducted in non-
partisan manner
• Bias for or against a candidate
indicates political intervention
• Bias need not be “express”
Activity by Organization’s
Leaders
• Prohibition does not restrict free
expression by an individual
• Leaders cannot make partisan
comments in official publications
or at official functions
• Outside the organization, leaders
should clearly indicate that
comments are personal
Appearances or
Speeches by Candidates
• Candidates may attend public
events with or without an
invitation
• Candidate speeches
–Equal opportunity to all
–No support or opposition by
organization
–No political fundraising
Acceptable Appearances
in a “Non-candidate”
Capacity
• Speaking as an expert or celebrity
• No mention of candidacy or
election
• No campaign activity
• Organization must maintain
nonpartisan atmosphere
Issue Advocacy vs.
Political Intervention
• 501(c)(3) organizations may take
positions on public policy issues
• Public policy position statements
must not favor or oppose a
candidate
• Policy statements not mentioning
candidate by name may still
violate pro