What
is the ban on political activity?
It is a
requirement imposed by Congress for the privilege of being
recognized as exempt from federal income tax under section
501(c)(3) of the Internal Revenue Code.
As a key element in its program to
secure compliance with the ban on
political campaign activity by section 501(c)(3)
organizations, the Internal Revenue Service educates
organizations about the ban and puts them on notice of the
enforcement program.
What
types of organizations are restricted by this ban?
Charities,
educational institutions and religious organizations,
including churches, are among those tax-exempt organizations
restricted.
Doesn’t the First Amendment grant an individual the right to
his or her political beliefs?
The ban on
political campaign activity does not restrict leaders of
organizations from expressing their views on political
matters if they are speaking for themselves as
individuals. Nor are leaders prohibited from speaking
about important issues of public policy. However, for their
organizations to remain tax exempt under section 501(c)(3),
leaders cannot make partisan comments in official
organization publications or at official functions of the
organization.
For example, a
minister of a church can attend an event for a particular
candidate and express his support of the candidate as long
as he does not state or otherwise imply that he is speaking
on behalf of his church. However, if a minister made the
same statement at an official church function or in an
official church publication that statement would be
prohibited political activity.
Can an
organization conduct voter registration and get-out-the-vote
drives?
Yes, if they
are conducted in a non-partisan manner. However, voter
education or registration activities conducted in a biased
manner that favors (or opposes) one or more candidates is
prohibited. In addition, a private foundation is subject to
tax if it expends funds for a voter registration drive that
does not meet the
requirements listed in section 4945(f) of the Internal
Revenue Code.
Can an
organization invite a political candidate to speak at its
events without jeopardizing its tax-exempt status?
If a candidate
is invited to speak at an organization event in his or her
capacity as a political candidate, the event will not be
considered prohibited political activity if:
a. The
organization provides an equal opportunity to
participate to all political candidates seeking the same
office;
b. The organization does not indicate any support for or
opposition to any candidate (including candidate
introductions and in communications concerning any
candidate’s attendance); and
c. No political fundraising occurs in conjunction with
the speech.
Can an
organization invite a political candidate to speak at an
organization event for reasons other than his or her
candidacy for public office?
An
organization can invite a candidate to speak in a
non-candidate capacity and it will not be considered
prohibited political activity as long as:
a. The
individual is chosen to speak solely for reasons other
than candidacy for public office;
b. The individual speaks only in a non-candidate
capacity;
c. Neither the candidate nor any representative of the
organization makes any mention of the individuals
candidacy or the election;
d. No campaign activity occurs;
e. The organization maintains a nonpartisan atmosphere
on the premises or at the event where the candidate is
present; and
f. The organization clearly indicates the capacity in
which the candidate is appearing and does not mention
the individual’s political candidacy or the upcoming
What
happens if a candidate attends an organization event that is
open to the public?
A candidate
may choose to attend an event that is open to the public,
such as a lecture, concert or worship service. The
candidate’s presence at an organization-sponsored event does
not, by itself, cause the organization to be engaged in
prohibited political activity. However, if the candidate is
publicly recognized by the organization, or invited to speak
it may cause the organization to be engaged in prohibited
political activity. See
Inviting Candidate to Speak for more details.
Can an
organization state its position on public policy issues that
candidates for public office are divided on?
An
organization may take positions on public policy issues,
including issues that divide candidates in an election for
public office as long as the message does not in any way
favor or oppose a candidate. Be aware that the message does
not need to identify the candidate by name to be prohibited
political activity. A message that shows a picture of a
candidate, refers to a candidate’s political party
affiliations, or other distinctive features of a candidate’s
platform or biography may result in prohibited political
activity.
Can an
organization conduct business activities with a candidate
for public office?
A business
activity such as selling or renting of mailing lists, the
leasing of office space or the acceptance of paid political
advertising may constitute prohibited political activity.
Some factors to consider in determining whether an
organization is engaged in prohibited political activity
include:
a. Whether
the good, service or facility is available to candidates
in the same election on an equal basis,
b. Whether the good, service or facility is available
only to candidates and not to the general public,
c. Whether the fees charged to candidates are at the
organization’s customary and usual rates, and
d. Whether the activity is an ongoing activity of the
organization or whether it is conducted only for a
particular candidate.
Can an
organization post information on its website (or link to
other websites) about a candidate for public office?
A website is a
form of communication. If an organization posts something
on its website that favors or opposes a candidate for public
office it is prohibited political activity. It is the same
as if the organization distributed printed material, or made
oral statements or broadcasts that favored or opposed a
candidate.
If an
organization establishes a link to another website, it is
responsible for the consequences of establishing and
maintaining that link even if the organization does not have
control over the content of the linked site. Because the
linked content may change, the organization should monitor
the linked content and adjust or remove any links that could
result in prohibited political activity.
May a
section 501(c)(3) organization make a contribution to a
political organization described in section 527 (such as a
candidate committee, political party committee or political
action committee (PAC))?
No, a section
501(c)(3) organization may not make a contribution to a
political organization described in section 527 (such as a
candidate committee, political party committee or political
action committee (PAC)). Nor may such an organization
establish and maintain a separate segregated fund under
section 527.
May a
section 501(c)(3) organization make a contribution to a
ballot measure committee (committees supporting or opposing
ballot initiatives or referenda)?
Yes, a section
501(c)(3) organization may make a contribution to a ballot
measure committee (committees supporting or opposing ballot
initiatives or referenda), but it must include such
contributions in its lobbying calculations for purposes of
determining whether a substantial part of its activities
consist of
attempting to influence legislation.
What
happens if an organization engages in prohibited political
activity?
Violating this
ban may result in denial or revocation of the organization’s
tax-exempt status and the imposition of an excise tax on the
amount of money spent on the activity.
Where
can I find more information about the ban on political
activity by section 501(c)(3) organizations?
For more
detailed information, including IRS
Revenue Ruling 2007-41, which outlines a number of
scenarios to help charities and churches understand the ban
on political campaign activity and actions that may arise,
see our website at
www.irs.gov/eo. An
on-line minicourse is also available.
In addition,
you should subscribe to Exempt Organization’s regular email
newsletter,
EO Update, which highlights new information posted on
the Charities and Non-Profits pages of irs.gov. To subscribe
go to www.irs.gov/eo and
click on
EO Newsletter.
Additional Information
Guidance to exempt organizations on how to apply the ban
in various factual situations.
Revenue Ruling 2007-41and Fact
Sheet 2006-17 distill IRS guidance in this area, each
providing 21 examples of how it applies.
News releases and other resources for the media
discussing the ban.
