Eleanor Finch
Non-profit organizations play a crucial role in advocating for social causes and engaging in political activities. However, when it comes to political campaigns, a delicate line must be tread to maintain their tax-exempt status. In this regard, the Johnson Amendment, passed by Congress in 1954, is a key piece of legislation that prohibits 501(c)(3) tax-exempt organizations 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 restriction extends to contributions, public statements, and endorsements, where non-profit leaders must clearly indicate that their views are their own and not that of the organization. While non-profits can invite political candidates to speak at events and engage in voter registration drives, it must be done in a non-partisan manner, without showing bias towards any candidate. The consequences of violating these rules can be severe, with the IRS imposing excise taxes or even revoking an organization's tax-exempt status.
| Characteristics | Values |
|---|---|
| Can non-profit workers invite political candidates to speak at events? | Yes, but the nonprofit must not endorse a candidate or show bias towards one. All candidates should be given equal opportunity to participate. |
| Can non-profit workers express their political beliefs? | Yes, but not in their official capacity as representatives of the non-profit. |
| Can non-profit workers endorse a candidate? | No, this includes partisan comments at organization functions or in organization publications. |
| Can non-profit workers contribute to a political campaign fund? | No, this is prohibited. |
| Can non-profit workers conduct voter registration and get-out-the-vote drives? | Yes, as long as it is conducted in a non-partisan manner. |
| Can non-profit workers state their position on public policy issues? | No, not if it indicates that one candidate is favored or opposed. |
| Can non-profit workers conduct business activities with a candidate for public office? | No, this is prohibited. |
| Can non-profit workers post information about a candidate on their website? | No, this is prohibited. |
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What You'll Learn
- Non-profit leaders can publicly endorse a candidate, but not via the organisation
- Non-profits can invite candidates to speak, but not about their campaign
- Non-profits can take a political position on controversial issues, but not in a way that indicates support or opposition to a candidate
- Non-profits can conduct voter registration and get-out-the-vote drives, but only in a non-partisan manner
- Non-profits can engage in lobbying, but only insubstantially
Non-profit leaders can publicly endorse a candidate, but not via the organisation
Non-profit organisations are prohibited from directly or indirectly participating in or intervening in any political campaign or legislative activity. This is known as the Johnson Amendment, passed in 1954, and it applies to all 501(c)(3) organisations. This is because non-profits are tax-exempt, and so political campaigning by these groups would be akin to the federal government subsidising political ideologies.
However, while non-profit organisations must remain non-partisan, this does not mean that non-profit leaders are gagged on political issues. They are free to express their support for or opposition to a candidate in their private capacity, so long as they do not use the non-profit to communicate their endorsement and they clearly indicate that their comments do not represent the views of the organisation. Non-profit leaders should avoid making endorsements via the organisation's website, social media accounts, email list, newsletter, bulletin, podcast, radio and TV programs, and other official forums.
Non-profit organisations can invite political candidates to speak at events, but they must be careful not to show bias for or against any candidate. They must also avoid any campaign activity, including fundraising. Non-profits can also engage in non-partisan voter registration and get-out-the-vote drives, as well as voter education activities.
If a non-profit is found to have engaged in partisan campaign activities, the IRS can impose excise taxes and revoke the organisation's tax-exempt status.
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Non-profits can invite candidates to speak, but not about their campaign
Non-profit organizations are permitted to invite political candidates to speak at their events. However, they must ensure that the event does not constitute a "political campaign activity", or they risk losing their tax-exempt status.
To avoid engaging in prohibited political activity, non-profits must follow certain guidelines. Firstly, they must provide an equal opportunity to participate to all political candidates seeking the same office. This means that all candidates should be invited and given relatively equal time and opportunity to participate. If one candidate is invited to speak at a large group event, while another is invited to a smaller event, this is not considered equal. Secondly, non-profits must not indicate any support for or opposition to any candidate, including during introductions and communications about attendance. This includes avoiding any campaign activity, such as fundraising. Finally, non-profits should maintain a non-partisan setting on the premises where the event is held.
Candidates may be invited to speak in their personal capacity, rather than as a political candidate, if they are chosen to speak for reasons other than their candidacy for public office. In such cases, the nonprofit and the candidate should avoid referencing the candidacy or election and instead focus on the non-political capacity in which the individual is appearing.
Non-profits are permitted to engage in advocacy and lobbying activities, as long as these are non-partisan and do not constitute a "substantial" amount of the organization's activities. They may also conduct non-partisan voter registration and voter education efforts. However, they must be careful not to engage in partisan campaign activities, as this could result in the loss of their tax-exempt status.
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Non-profits can take a political position on controversial issues, but not in a way that indicates support or opposition to a candidate
Non-profit organizations are prohibited from directly or indirectly participating in or intervening in any political campaign or legislative activity on behalf of or in opposition to any candidate for elective public office. This is known as the Johnson Amendment, passed in 1954, and it applies to all 501(c)(3) organizations.
However, non-profits are permitted to engage in advocacy and lobbying, which are treated separately under the law. Lobbying involves communicating with decision-makers about existing legislation and urging a vote for or against it. Non-profits can engage in lobbying as long as they do not expend more than an "insubstantial" amount of energy, finances, or other resources on these activities.
Non-profits can also invite political candidates to speak at their events, but they must follow certain guidelines to avoid prohibited political activity:
- Provide equal opportunities to all candidates seeking the same office, inviting all candidates and giving them relatively equal time and opportunity to participate.
- Give no indication of support or opposition to any candidate, maintaining a non-partisan setting and avoiding any campaign activity, including fundraising.
- Focus on non-political topics, such as the charitable work of the non-profit and topics related to its mission.
Non-profit leaders and staff are allowed to publicly endorse a candidate in their private capacity, as long as they do not use the non-profit to communicate their endorsement or imply that their views represent those of the organization. Non-profits can also engage in non-partisan voter registration, voter education, and get-out-the-vote efforts. These activities are allowed as long as they do not favor or oppose any candidate.
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Non-profits can conduct voter registration and get-out-the-vote drives, but only in a non-partisan manner
Non-profit organizations are permitted to engage in voter registration and get-out-the-vote drives, but they must do so in a non-partisan manner. This means that they cannot favour or oppose any particular candidate or political party. The aim is to ensure that non-profits do not engage in political campaign activity and remain neutral.
The rules are in place to protect the tax-exempt status of non-profits. The Internal Revenue Service (IRS) states that charitable non-profits must not "participate in, or intervene in (including the publishing or distributing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office." If a non-profit is found to have engaged in partisan campaign activities, the IRS can revoke its tax-exempt status.
Despite these restrictions, non-profits are allowed to invite political candidates to speak at their events. However, they must provide an equal opportunity to all candidates seeking the same office and give no indication of support or opposition to any candidate. Non-profits can also take a political position on controversial issues, but they must not indicate that one candidate is favoured or opposed.
Non-profits must be careful to maintain their non-partisan position when conducting voter registration and get-out-the-vote drives. This means that they cannot offer incentives or transportation to the polls only to those who support a particular candidate or party. They also cannot coordinate their activities with any candidate or political party. Non-profits must provide registration information and voting assistance without regard to an individual's political preference.
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Non-profits can engage in lobbying, but only insubstantially
Non-profit organisations are permitted to engage in advocacy, which includes lobbying and legislative activities. However, it is important to distinguish these from political campaign activities, which are prohibited for 501(c)(3) charitable non-profits.
Lobbying is defined as communicating with decision-makers about existing legislation and urging a vote for or against it. It is considered a "substantial part" of a non-profit's activities when it constitutes more than an insubstantial amount of energy, finances, or other resources. This threshold is vague and depends on the specific circumstances of the organisation. Non-profits that engage in substantial lobbying may be exposed to IRS penalties and lose their tax-exempt status.
To avoid this, non-profits can ensure that lobbying does not constitute a "substantial part" of their activities. They can conduct educational meetings, prepare and distribute educational materials, or consider public policy issues in an educational manner without jeopardising their tax-exempt status. Additionally, non-profits can invite political candidates to speak at their events, as long as they provide equal opportunities to all candidates, show no bias, and prohibit fundraising efforts. Non-profit leaders can also publicly endorse a candidate, as long as they do not use the non-profit to communicate their endorsement and make it clear that their comments do not represent the organisation's views.
In summary, while non-profits can engage in lobbying, they must do so insubstantially to avoid IRS penalties and maintain their tax-exempt status. Non-profits can also engage in other forms of advocacy and carefully navigate political activities to maintain compliance with regulations.
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Frequently asked questions
Yes, the First Amendment grants an individual the right to express their political beliefs. However, they must do so in their private capacity and not as a representative of the non-profit.
Non-profit leaders can publicly endorse a candidate as long as they do not use the non-profit to communicate their endorsement and make it clear that their comments do not reflect the views of the organisation.
Yes, but the event must be non-partisan, and the candidate must be invited in their personal capacity, not as a candidate. The non-profit should also provide equal opportunities to all candidates seeking the same office.
No, non-profits are prohibited from making monetary contributions to political campaigns.
No, non-profit workers cannot participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office. Doing so may result in the revocation of the organisation's tax-exempt status.
