Charities Should Not Engage in Political Activities

All section 501(c)(3) organizations (i.e. charities, churches, private foundations) are absolutely 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.

Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.  Violating this prohibition may result in denial or revocation of your organization’s tax-exempt status and the imposition of certain excise taxes.

 Certain activities or expenditures may not be prohibited depending on the facts and circumstances.  For example, certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner do not constitute prohibited political campaign activity. In addition, other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not be prohibited political campaign activity if conducted in a non-partisan manner.

However, voter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention that could jeopardize your tax-exempt status.

Congress wanted to avoid using tax dollars to finance candidates as taxpayers receive charitable contribution tax deductions to 501(c)(3) organizations.

It’s been awhile since I have seen the IRS enforce this law (due to political backlash). I don’t even think the IRS sent out a press release about this law.

Some organizations have a related 501(c)4 organization. 501(c)4 organizations can do certain political activities (groups such as ACLU and Sierra Club). Contributions to 501(c)(4) organizations are not tax deductible.