There are 3 political campaign activities that meet the prohibited participation or intervention requirement for Section 501(c)(3) organizations:
1) publication or distribution of written or printed statements or the making of oral statements on behalf of, or in opposition to, a candidate for public office;
2) payment of campaign workers salaries or expenses; and
3) conducting, or payment of expenses of conducting, a voter registration drive limited to the geographic area covered by the campaign.
A Section 501(c)(3) organization will likely be disqualified from tax-exempt status should it engage in any of the above political activities.
There are things a Section 501(c)(3) organization can do to participate in political activities and campaigns without losing their tax-exempt status. For instance, voter education programs are not prohibited. Nonpartisan candidate debates are also allowed, but if the questions posed to the candidates indicate a bias, the IRS may take the position that the organization is participating in a political campaign.
-by Dorian V. George, Legal Assistant
The Dandridge Firm can assist with your nonprofit IRC 501(c) tax matters. Should you want to learn more about this post or our services, please visit www.DandridgeLaw.com or email ContactUs@DandridgeLaw.com for a FREE Legal Evaluation.
Labels: 501c3, 501c3 tax-exempt status, nonprofit, nonprofit compliance, Nonprofit contributions