Political Campaign Donations: Can 501(C)(3)S Accept Them?

In the United States, 501(c)(3) organizations are prohibited from directly or indirectly participating in, or intervening in, any political campaign or activity. This includes making contributions to political campaign funds or making public statements of position on behalf of the organization. This prohibition extends to all candidates for elective public office, from the president of the United States to local candidates. Violating this prohibition may result in the denial or revocation of tax-exempt status and the imposition of excise taxes. However, individuals associated with a 501(c)(3) organization are entitled to voice their opinions and participate in a political campaign, as long as they do not speak for the organization. Additionally, 501(c)(3) organizations can engage in legislative and issue-related advocacy, as well as certain voter education activities, as long as they are conducted in a non-partisan manner.

Can a 501(c)(3) accept donations from a political campaign?

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Can a 501(c)(3) organisation invite a political candidate to speak at its events?

C)(3) organizations are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of or in opposition to any candidate for elective public office. This includes any verbal or written statements made on behalf of the organization that favor or oppose any candidate for public office. Contributions to political campaigns are also prohibited.

However, 501(c)(3) organizations can invite a political candidate to speak at their events without jeopardizing their tax-exempt status, as long as they follow certain guidelines. Firstly, the organization must provide equal opportunities to all political candidates seeking the same office and give them relatively equal time and opportunity to participate. Secondly, the organization must give no indication of support or opposition to any candidate and maintain a non-partisan setting. Finally, the organization must prohibit any fundraising efforts and avoid any campaign activity, including references to the candidacy or election of the speaker.

In addition, 501(c)(3) organizations can engage in certain voter education activities, such as presenting public forums and publishing voter education guides, as long as they are conducted in a non-partisan manner. Other activities that encourage participation in the electoral process, such as voter registration and get-out-the-vote drives, are also permitted as long as they are non-partisan. It is important to note that any indication of bias towards or against a candidate will constitute prohibited participation or intervention.

Can a 501(c)(3) organisation conduct voter registration and get-out-the-vote drives?

Voter registration and get-out-the-vote (GOTV) drives are permitted by 501(c)(3) organisations, as long as they are conducted in a neutral, non-partisan manner. This means that there should be no reference to any candidate or political party, and no bias towards or against any candidate or political party. For example, a 501(c)(3) organisation can set up a voter registration booth at a public event, as long as the booth does not reference any candidate or political party, and the volunteers do not engage in any partisan discussions.

The Internal Revenue Service (IRS) provides an example of an allowed GOTV effort:

> "A section 501(c)(3) organisation that promotes community involvement sets up a booth at a state fair where citizens can register to vote. The signs and banners in and around the booth give only the name of the organisation, the date of the next upcoming statewide election, and notice of the opportunity to register. No reference to any candidate or political party is made by the volunteers staffing the booth or in the materials available at the booth, other than the official."

On the other hand, voter education or registration activities with evidence of bias that favour or oppose a candidate or political party will constitute prohibited participation or intervention. This includes activities that have the effect of favouring a candidate or group of candidates, even if there is no explicit mention of the candidate's name. For example, showing a picture of a candidate or referring to distinctive features of a candidate's platform are still prohibited activities.

Therefore, it is important for 501(c)(3) organisations to remain non-partisan in their approach when conducting voter registration and get-out-the-vote drives to avoid violating the prohibition against political campaign activity, which may result in the denial or revocation of tax-exempt status and the imposition of certain excise taxes.

Can a 501(c)(3) organisation state its position on public policy issues?

C)(3) organisations are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of or in opposition to any candidate for elective public office. This includes making public statements of position (verbal or written) in favour of or in opposition to any candidate for public office.

However, 501(c)(3) organisations can and do take positions on public policy issues such as environmental protection, gun violence prevention, healthcare, or education. This activity is sometimes referred to as "issue advocacy" and may include educating and persuading the public through various communications, including speeches and media campaigns. Nevertheless, when the issues advocated by an organisation become divisive in an election for public office, it can be challenging to distinguish between issue advocacy and political intervention. A statement that could be interpreted as supporting or opposing a particular candidate or group of candidates, even without mentioning their name or political party, may still be deemed political intervention.

To evaluate potential political activity, the IRS considers not only the language used by the organisation but also external factors such as the timing of the communication, the targeted audience, and how the message relates to public policy positions that differentiate candidates in a campaign. Voter education and registration activities, such as presenting candidate forums and distributing informational voter guides, are permissible if conducted impartially. However, the IRS has warned that voter guides, in particular, pose a "risk for noncompliance" if they focus on a limited range of issues or are structured in a biased manner.

While 501(c)(3) organisations must carefully navigate restrictions, they can play a vital role in educating and advocating within the political system. Attorneys and experts in nonprofit law can help clarify the scope of permissible political activity, allowing organisations to engage in public policy discourse without risking their tax-exempt status.

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Can a 501(c)(3) organisation conduct business activities with a candidate?

C)(3) organisations are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of or in opposition to any candidate for elective public office. This includes any verbal or written statement made on behalf of the organisation that favours or opposes any candidate for public office. Contributions to political campaigns are also prohibited, so 501(c)(3) organisations may not make monetary contributions to political campaign funds.

In addition, 501(c)(3) organisations cannot engage in the following activities:

• Using the organisation's funds to publish materials that support (or oppose) a candidate
• Donating money from the organisation to a political candidate
• Inviting a political candidate to make a campaign speech at an event hosted by the organisation
• Inviting all candidates to speak at an event, but arranging the speaking event or choosing the questions in a way that shows the organisation favours one candidate over the others
• Conducting a "get out the vote" telephone drive in a partisan manner by selecting caller responses for further follow-up based on candidate preference
• Any statements by the organisation's executive director, in their official capacity, that support a candidate
• Criticising or supporting a candidate on the organisation's website

However, individuals associated with a 501(c)(3) organisation are entitled to voice their opinions and participate in a political campaign, as long as they are not speaking for the organisation. Nonprofit leaders may publicly endorse a candidate, as long as they do not use the nonprofit to communicate their endorsement and clearly indicate that their comments do not represent the views of the organisation.

Therefore, it is clear that 501(c)(3) organisations are restricted from conducting business activities with a candidate.

Can a 501(c)(3) organisation post information about a candidate on its website?

Under the Internal Revenue Code, all 501(c)(3) organizations are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. This includes making public statements of position (verbal or written) in favor of or in opposition to any candidate for public office. Therefore, posting information about a specific candidate on its website would likely be considered prohibited political campaign activity.

However, 501(c)(3) organizations can engage in issue advocacy, which may include criticizing, praising, or even mentioning legislators who happen to be running for office or referencing political parties. For example, a 501(c)(3) organization may urge both major party candidates in a race to take action on a particular issue without criticizing any candidate or indicating support for one candidate over another.

It is important to note that 501(c)(3) organizations must be very cautious when discussing political candidates to avoid appearing to support or oppose any candidate. This includes being deliberate and careful with their statements and avoiding communicating anything that could be perceived as attempting to influence voters. Organizations can gather information about candidates during a campaign, but they must be careful about using that information publicly.

In addition, 501(c)(3) organizations can engage in certain voter education activities conducted in a non-partisan manner, such as presenting public forums and publishing voter education guides. On the other hand, voter education activities that favor one candidate over another or oppose a candidate will constitute prohibited participation or intervention.

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