Eleanor Finch
Non-profit organizations play a crucial role in society by advocating for various causes and issues. However, when it comes to political campaigns, the rules surrounding their involvement are stringent. In the United States, non-profits are prohibited from donating to specific candidates or campaigns due to their tax-exempt status. This restriction, known as the Johnson Amendment, ensures that government subsidies for non-profits are not indirectly used to fund political ideologies. While non-profit leaders can endorse candidates in their personal capacity, they must not use the organization's platform or resources to communicate their support. Non-profits can, however, engage in non-partisan activities like voter registration drives, voter education, and hosting candidate debates, as long as they maintain impartiality. These rules aim to maintain the separation of non-profit activities from political campaigns, with severe consequences for non-compliance, including the loss of tax-exempt status.
| Characteristics | Values |
|---|---|
| Can a non-profit donate to a political campaign? | No, non-profits are prohibited from making donations to political campaigns. |
| Can a non-profit endorse a candidate? | Non-profit leaders can endorse a candidate, but they must not use the non-profit to communicate their endorsement and must not make partisan comments at organization functions or in organization publications. |
| Can a non-profit invite a political candidate to speak at its events? | Yes, but to avoid prohibited political activity, nonprofits should provide equal opportunities to all political candidates seeking the same office, give no indication of support or opposition of a candidate, and prohibit fundraising efforts. |
| Can a non-profit conduct a voter registration drive or get-out-the-vote effort? | Yes, voter registration and education efforts are allowed as long as they are conducted in a non-partisan manner. |
| Can a non-profit engage in legislative or issue advocacy? | Yes, as long as it steers clear of political campaigning. |
| Can individuals associated with a non-profit voice their opinions and participate in a political campaign? | Yes, as long as they are not speaking for the organization. |
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What You'll Learn
- Nonprofit leaders can publicly endorse a candidate, but not via the nonprofit
- Nonprofits can invite candidates to speak, but not in their capacity as candidates
- Nonprofits can engage in nonpartisan voter registration and education
- Nonprofits can take a political position on controversial issues
- Nonprofits can engage in legislative advocacy and issue-related advocacy
Nonprofit leaders can publicly endorse a candidate, but not via the nonprofit
Nonprofit organizations are prohibited from directly or indirectly participating in any political campaign or endorsing any candidate for elective public office. This means that nonprofit leaders cannot use the nonprofit to communicate their endorsement or make partisan comments through any of the nonprofit's platforms, such as its website, social media accounts, or newsletters. However, nonprofit leaders can publicly endorse a candidate in their personal capacity, as long as they make it clear that their views do not represent those of the organization.
The Johnson Amendment, passed by Congress in 1954, prohibits tax-exempt organizations from campaigning for or against political candidates. This is because nonprofit entities receive government subsidies in the form of tax exemptions, so allowing them to contribute to political campaigns would be akin to the federal government subsidizing political ideologies. As a result, nonprofits that violate these rules may have their tax-exempt status revoked and may be subject to excise taxes.
Despite these restrictions, nonprofit leaders can still participate in political activities in certain ways. They can conduct non-partisan voter registration drives, get-out-the-vote efforts, and voter education programs, as long as these activities do not favor or oppose any particular candidate. Nonprofits can also invite candidates to speak at their events in a personal capacity, rather than as a candidate, and they can acknowledge incumbent officials who are running for re-election, as long as they do not endorse their campaigns.
It is important for nonprofit leaders to be cautious when engaging in any political activity to avoid the appearance of endorsing a particular candidate or political party. This is because, even if the organization does not technically violate any rules, it may still lose the trust of its donors, volunteers, and the public if it appears to be taking sides in partisan politics. Therefore, nonprofit leaders should ensure that any political activities are conducted in a non-partisan manner and that they do not use the nonprofit's resources or platforms to communicate their personal endorsements.
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Nonprofits can invite candidates to speak, but not in their capacity as candidates
Nonprofit organizations play a crucial role in educating the public about community issues and fostering political engagement through non-partisan means. However, they must navigate strict regulations regarding their involvement in political campaigns to maintain their tax-exempt status. The Johnson Amendment, passed by Congress in 1954, prohibits tax-exempt organizations from directly or indirectly campaigning for or against political candidates. This includes charitable nonprofits, which are prohibited from making contributions to federal elections and risk losing their tax-exempt status if they engage in partisan campaign activities.
With these restrictions in mind, nonprofits can still engage with political candidates in certain limited ways. Nonprofits may invite candidates to speak at their events, but it is a delicate task. The key consideration is that the candidate must not speak in their capacity as a candidate but rather in a personal capacity, with no reference to their campaign or the election. The nonprofit must maintain a non-partisan setting, avoiding any campaign activity, including fundraising, and ensuring the event does not favor or oppose any candidate.
The challenge, as noted by the National Council of Nonprofits, is that it can be difficult to "control the message" when a candidate is speaking. As a result, many nonprofits choose to avoid inviting candidates altogether to scrupulously maintain their nonpartisan position. However, if a nonprofit wishes to invite a candidate, the recommended approach is to ensure the candidate speaks solely about topics related to the nonprofit's mission and that other candidates are also invited.
It is important to emphasize that while board directors, members, and staff of a nonprofit are free to express their support for or opposition to a candidate in their private capacities, the organization itself must remain objective and non-endorsing. Nonprofits can achieve this by focusing on voter education and registration activities conducted in a non-partisan manner, which do not favor or oppose any particular candidate.
In summary, while nonprofits can invite candidates to speak, they must take great care to ensure the event does not constitute an endorsement of the candidate or their campaign. Any misstep in this regard could jeopardize the nonprofit's tax-exempt status and lead to other legal repercussions.
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Nonprofits can engage in nonpartisan voter registration and education
Nonprofits play a critical role in promoting voting as a safe and accessible activity to strengthen communities. They can achieve this by engaging in nonpartisan voter registration and education initiatives. Nonprofits are trusted sources of nonpartisan resources and can provide valuable information to the public without endorsing or opposing any candidate or political party.
The Johnson Amendment, passed by Congress in 1954, prohibits tax-exempt organizations from campaigning for or against political candidates. This policy ensures that government subsidies for nonprofit entities do not indirectly fund political ideologies. Nonprofits must therefore remain politically nonpartisan to maintain their tax-exempt status.
Nonprofits can engage in nonpartisan voter registration drives, helping eligible individuals register to vote without promoting a particular candidate or political party. They can also provide educational resources to help voters understand their ballots, locate their polling places, and make a plan to vote in person or remotely. Additionally, nonprofits can host candidate forums, which provide an opportunity for voters to learn more about the candidates and make informed decisions.
It is important for nonprofits to maintain objectivity and avoid any appearance of bias during these activities. Voter education or registration efforts that favor or oppose a particular candidate or group of candidates are considered prohibited political campaign activity. Nonprofits must carefully navigate these restrictions to ensure compliance with the law while still encouraging voter participation and engagement.
To assist nonprofits in this process, organizations like Nonprofit Vote and the American Alliance of Museums offer comprehensive toolkits and resources. These resources provide guidance on permissible voter engagement activities, ensuring that nonprofits can effectively engage in elections while remaining nonpartisan.
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Nonprofits can take a political position on controversial issues
Nonprofits must be very careful when it comes to political activity, as they can quickly jeopardize their tax-exempt status. In 1954, Congress passed the Johnson Amendment, prohibiting tax-exempt organizations from campaigning for or against political candidates. This includes any public statements of position (verbal or written) made on behalf of the organization.
However, this does not mean that nonprofits are entirely barred from taking a stand on controversial issues. The key distinction is between "issue advocacy" and "campaign advocacy." While the latter is prohibited, the former is allowed, as the IRS permits 501(c)(3) organizations to publicize their opinions and even attempt to sway public opinion, as long as such statements do not mention political parties or candidates, are not made close in time to an election, and make no reference to voting.
For example, nonprofits can engage in voter education activities, such as presenting public forums and publishing voter education guides, as long as they are conducted in a non-partisan manner. They can also encourage people to participate in the electoral process through voter registration and get-out-the-vote drives, as long as they remain unbiased.
Additionally, 501(c)(4) organizations, which are classified as social welfare organizations, have more flexibility when it comes to political activity. They can engage in lobbying for legislative changes they believe in, but they must restrict political activity to only a portion of their purpose to maintain their tax-exempt status.
When deciding whether to take a stand on a controversial issue, nonprofits should consider the potential pros and cons. On the one hand, taking a stand can demonstrate conviction and alignment with the organization's mission and values, deepen relationships with constituents who share the same beliefs, and potentially make a difference in political decisions. On the other hand, there is a risk of driving away constituents who disagree with the organization's stance and losing tax-exempt status if the rules are not followed carefully.
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Nonprofits can engage in legislative advocacy and issue-related advocacy
Nonprofit organizations are prohibited from donating to political campaigns or candidates. However, they can engage in legislative advocacy and issue-related advocacy, which are crucial tools for nonprofits to achieve their goals and create lasting change for the communities they serve.
Legislative Advocacy
Legislative advocacy refers to the process of stakeholders making their voices heard on issues that affect their lives and the lives of others at the local, state, and national levels. It also involves helping policymakers find solutions to persistent problems. Nonprofits can engage in legislative advocacy by developing relationships with policymakers and influencing public policy. This can include testifying before a legislative committee, providing assistance to a legislative committee upon request, or educating members of Congress about the effects of a policy on their constituents. It is important to note that legislative advocacy should not be confused with lobbying, which refers to activities in direct support of or opposition to specific legislation. While nonprofits can engage in some lobbying, it is subject to strict rules and regulations, including budget limitations.
Issue-Related Advocacy
Issue-related advocacy, also known as ambassadorship, involves communicating the mission, values, and issues of the nonprofit organization to the public. This can include nonpartisan voter education, publishing voter guides, and conducting voter registration drives. Nonprofits must be careful not to endorse or oppose any political candidate directly or indirectly during issue-related advocacy. The IRS considers factors such as the proximity to an election, references to voting, and the organization's ongoing campaigns when determining if an activity is issue advocacy or political campaign activity. Nonprofit leaders and board members have free speech rights but must ensure their personal opinions on campaign issues are not associated with the organization.
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Frequently asked questions
No, non-profits are prohibited from donating to political campaigns. This includes both direct and indirect contributions.
The IRS can revoke the organization's tax-exempt status and impose excise taxes.
Yes, as long as they do not use the non-profit to communicate their endorsement and make it clear that their views are their own. Non-profit leaders should not make partisan comments at organization functions or in organization publications.
Yes, but the nonprofit should not endorse any candidate and should provide an equal opportunity to all candidates seeking the same office.
Yes, but it must be done in a way that does not favor or oppose any candidate and does not involve substantial legislative activities (lobbying).
