Election seasons provide unique opportunities for 501(c)(3) organizations to engage with public policy issues and influence civic dialogue. During this period, candidates are more receptive to advocacy efforts, presenting a chance for 501(c)(3)s to highlight important issues and give a voice to the underrepresented. However, there are strict legal constraints that all 501(c)(3) organizations must adhere to.
Legal Prohibitions. These rules are in force year-round, but election season brings heightened scrutiny. Accordingly, many 501(c)(3) organizations are more conservative in applying these rules during election season.
- Supporting or Opposing Candidates. Particularly during election season, 501(c)(3) organizations, including private and public foundations, are absolutely prohibited from participating in or intervening in political campaigns on behalf of or against any candidate. This includes explicit endorsements, opposition, or comparing candidate positions to the organization’s views.
- Staff and Volunteer Conduct. The prohibition extends to staff, trustees, and volunteers acting on behalf of the organization. Invited speakers at organization events must also comply with these rules.
- IRS Enforcement. The IRS uses a “facts and circumstances” test to determine if an organization has violated these prohibitions. Facts and circumstances are subjective to some degree, which leads many organizations to interpret these rules conservatively.
Permissible Activities.
Despite these restrictions, 501(c)(3) organizations can engage in various nonpartisan election-related activities, including.
- Voter Education. Discussing voter suppression, voter ID bills, ballot measures, and redistricting efforts on a non-partisan basis.
- Voter Mobilization. Conducting nonpartisan voter registration and get-out-the-vote campaigns.
- Lobbying. Public charities can lobby within certain limits, such as supporting or opposing ballot measures. Private foundations should avoid lobbying to prevent excise tax penalties.
Examples of Permissible and Prohibited Statements.
Permissible.
- “Discuss the impact of voter suppression on minority communities.”
- “Share updates on redistricting efforts.”
- “Support Proposition C” (public charities only, within lobbying limits).
Prohibited.
- “Vote for Candidate X.”
- “Candidate Y has the best plan for the budget.”
- “Ensure Candidate Z wins.”
Individual Partisan Activities.
Officers, directors, and employees can engage in political campaigns in their personal capacity, provided they do not use organizational resources, facilities, or social media accounts for partisan activities.
Conclusion.
Maintaining nonpartisanship is crucial for 501(c)(3) organizations during election seasons to comply with IRS regulations. By focusing on permissible activities like voter education and nonpartisan mobilization efforts, organizations can contribute to the democratic process without risking their tax-exempt status.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C. licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on federal tax and fundraising regulations nationwide. Ellis also advises donors concerning major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.