IRS Laws Prohibiting Non Profits From Political Activity
For the sake of charitable or educational purposes, the Internal Revenue Service code (the U.S. Tax code) permits, under section 501(c)(3), certain organizations to be exempt from income tax. This includes churches and foundations. The cost of this tax-free status is that such groups may not engage in "politics." What this means exactly is spelled out in the IRS code.
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"Politics" Definition
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Politics is defined in reference to a person or individual's campaign for political office---a candidate. This is the central definition of all IRS legislation for tax-exempt foundations. "Causes" is another matter. A tax exempt organization might be involved with "causes," so long as these are separate from an actual campaign for political office.
Partisanship
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A 501(c)(3) organization may not, in verbal form or in writing, endorse or oppose a candidate, either directly or indirectly. They may not do anything that would cause people to be biased against a specific candidate. Again, "causes" are not at issue, even though these might bias certain people. Under certain circumstances that must go before a judge, "causes" may fall under the "indirect" prohibition of partisanship.
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Non-Partisan Behavior
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The law is clear that "direct" and "indirect" means of influencing voters during a campaign is called "partisanship" and hence could lead to the revocation of tax-exempt status and even the imposition of certain excise taxes as a penalty.
Each activity of a 501(c)(3) organization must be taken in its specific context. The basic rule is that it must provide the views of all candidates in a race. Of course, outside of a specific race, dealing with specific candidates, the tax exempt organization can do as it pleases.
"Views" and "Causes"
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When dealing with "political" activity, the basic idea is that nothing can interfere with the running of a political race. Political activity is permitted so long as all candidates are permitted to address the event, such as a voter education drive.
All these things must be done in a non-partisan manner. Whether all candidates' "views" are permitted is another matter. "Views," like "causes" are different from the actual race at issue. Since the IRS defines "politics" as referencing a specific race with candidates, "views" are not important so long as they do not mention political candidates. Only people (candidates) are relevant in this context.
Violation
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A tax-exempt organization violates the IRS regulations under two circumstances: If the partisanship is done in an official capacity or is done "in the name" of the organization.
The result is that leaders or board members of tax exempt organizations as individuals are free to endorse or reject candidates. The organization is another matter. For example, if the head of the Rockefeller Foundation decides to support publicly a candidate for the governorship of New York, and does so in an official publication of the foundation, then the laws are violated. If this same head were to do so in a local newspaper as an individual, without reference to the group, then the law has not been violated.
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