Political Campaigning: Non-Profits' Role And Definition

Non-profit organizations are prohibited from directly or indirectly participating in any political campaign or intervening on behalf of or in opposition to any candidate for elective public office. This is because they are given tax-exempt status by the federal government. The Internal Revenue Service (IRS) considers political campaigning to include activities such as inviting a political candidate to make a campaign speech at an event hosted by the organization, using funds to publish materials that support a candidate, donating money to a political candidate, and making public statements for or against a candidate. Non-profits can, however, engage in non-partisan activities such as voter registration drives, non-partisan candidate debates, and voter education.

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Non-profits must remain non-partisan

Non-profit organizations are prohibited from directly or indirectly participating in any political campaign or intervening on behalf of or in opposition to any candidate for elective public office. This includes endorsements of candidates, public statements for or against candidates, and distribution of materials that favor or oppose candidates. Non-profits are also not allowed to use their funds to publish materials that support or oppose a candidate or donate money to a political candidate. These activities are considered political campaigning and are prohibited by the IRS, which may result in the denial or revocation of tax-exempt status and the imposition of excise taxes.

It is important to note that individuals associated with a non-profit are allowed to voice their opinions and participate in a political campaign as long as they are not speaking for the organization. However, non-profits must be vigilant about ensuring that their activities do not inadvertently support or oppose any political candidate. This includes being cautious about the content on their websites, as the IRS considers websites and links to be the same as printed material or personal speech by individuals in the organization.

The IRS takes a strict view of political campaigning by non-profits and will evaluate any potential misconduct within the context of the organization's other activities and the current political climate. As such, non-profits must be cautious and seek legal advice when necessary to ensure they comply with federal law and maintain their tax-exempt status.

Political campaigning risks tax-exempt status

Political campaigning by non-profits is a highly sensitive issue that can put their tax-exempt status at risk. Non-profit organisations, such as 501(c)(3) charities, churches, and foundations, are prohibited from directly or indirectly participating in any political campaign or endorsing any candidate for elective public office. This is because they have promised the federal government to refrain from such activities in return for their tax-exempt status.

The Internal Revenue Service (IRS) takes a very strict stance on this issue, and violating the prohibition may result in severe consequences, including the revocation of tax-exempt status and the imposition of excise taxes. The IRS evaluates any potential misconduct using a "'facts and circumstances' test", considering the context of the organisation's other activities and the current political climate.

So, what constitutes political campaigning? The IRS defines it as any action or speech that favours or opposes candidates for elected public office. This includes endorsements of candidates, public statements for or against candidates, and distributing materials that support or oppose a candidate. The timing of an activity is also crucial; an activity may be considered political campaigning two weeks before an election but not two years before.

Non-profits must be vigilant about maintaining their neutrality. They can, however, engage in non-partisan activities such as voter registration drives, non-partisan candidate debates, and voter education, as long as these activities align with their exempt purposes. Lobbying and legislative activities are also permissible to a certain extent, as long as they do not cross the line into political campaigning.

In summary, while non-profits are expected to stay out of political campaigns, they can still engage in advocacy and issue-based activities as long as they follow the rules and do not favour or oppose any particular candidate.

Non-profits can engage in advocacy

So, what can non-profits do to engage in advocacy without crossing the line into political campaigning? Firstly, they can engage in non-partisan activities such as non-partisan voter registration drives, non-partisan candidate debates, and non-partisan voter education, as long as these activities fulfil their exempt purposes. They can also engage in legislative advocacy and issue-related advocacy, as long as they steer clear of political campaigning. For example, they can communicate with decision-makers about existing legislation and urge them to vote for or against a particular bill. They can also encourage the public to contact legislators about a particular bill and advocate for a position on a public referendum. However, non-profits must be careful not to expend more than an "insubstantial" amount of energy, finances, or other resources on these activities, as substantial lobbying may be subject to IRS penalties.

Another way for non-profits to engage in advocacy is through their websites and social media presence. They can use these platforms to provide educational and informational content about issues related to their mission. However, they must be careful not to include any links or endorsements of political candidates, as this would be considered political campaigning.

In addition, individuals associated with a non-profit are entitled to voice their opinions and participate in a political campaign, as long as they are not speaking on behalf of the organization. It is important for non-profits to clearly communicate to their members and employees that their political activities are not representative of the organization to avoid any confusion or potential violations.

Overall, while non-profits can and should engage in advocacy, they must be vigilant about maintaining a non-partisan position and ensuring that their activities do not cross the line into political campaigning, which could have significant consequences for their organization.

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Non-profits can engage in lobbying

Non-profit organizations play a crucial role in influencing policies and legislation at various government levels. While they are prohibited from directly or indirectly participating in any political campaign supporting or opposing a candidate for elective public office, they can engage in lobbying activities within certain limits.

The Internal Revenue Service (IRS) defines lobbying as any action or speech that attempts to impact the adoption or rejection of legislation. This includes direct contact with voting members of a legislative body, urging the public to contact legislators, and advocating a position on a public referendum. Non-profits can engage in these activities as long as they do not favor or oppose a candidate and are conducted in a non-partisan manner. For example, non-profits can host non-partisan candidate debates, conduct voter registration drives, and provide voter education as long as these activities align with their exempt purposes.

To ensure compliance, non-profits can file Form 5768, which allows them to engage in lobbying activities as long as the spending remains within established thresholds. The IRS provides resources and a facts and circumstances test to help organizations navigate these rules.

It is important to note that while individuals associated with a non-profit can express their personal opinions and participate in political campaigns, they must not imply that they are speaking on behalf of the organization. Non-profits must be vigilant about this distinction to avoid severe consequences, including the loss of tax-exempt status or the imposition of excise taxes.

Non-profits can engage in legislative activities

So, what does this mean for non-profits engaging in legislative activities? Firstly, they must ensure that their activities do not favour or oppose any particular candidate. This includes both candidates for election and incumbent officeholders. Non-profits must also be careful not to provide a platform for candidates to campaign, even if their views align with the organization's mission. For example, inviting a candidate to speak at an event or publishing an endorsement from a candidate on a website or newsletter could be considered a violation. Non-profits should also avoid any activities that could be seen as contributing to a political campaign, such as donating funds or other assets.

However, non-profits can engage in non-partisan activities such as voter registration drives, candidate debates, and voter education, as long as these activities fulfill the organization's exempt purposes. They can also engage in legislative advocacy and issue-related advocacy, provided they follow certain rules and do not engage in political campaigning. Lobbying is a type of advocacy that involves communicating with decision-makers about existing legislation and urging a particular vote. Charitable non-profits that engage in substantial lobbying may be subject to IRS penalties, so it is important to monitor the time and resources spent on these activities.

In summary, non-profits can engage in legislative activities, but they must be vigilant about maintaining a non-partisan position and avoiding any activities that could be construed as political campaigning. By staying informed and consulting legal advice when necessary, non-profits can effectively navigate the rules surrounding political activity and continue to make a positive impact through their legislative work.

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