Liberty Counsel

Churches and 501(c)(3) organizations may engage in lobbying activities with certain limitations. A 501(c)(4) organization may engage in lobbying activities without any limitations. However, churches, 501(c)(3) and 501(c)(4) organizations are prohibited from endorsing or opposing candidates for political office. Nevertheless, churches, 501(c)(3) and 501(c)(4) organizations may educate the public with respect to the election process and may disseminate neutral information regarding positions taken by the candidates. A “candidate” is a person “who offers himself . . . as a contestant for an elective public office, whether such office be national, state, or local.” Treas.Reg.1.501(c)(3)-1(c)(3)(iii).

The IRS has provided the following illustrations regarding voter guides:

SITUATION 1

Organization A has been recognized as exempt under section 501(c)(3) of the Code by the Internal Revenue Service. As one of its activities, the organization annually prepares and makes generally available to the public a compilation of voting records of all members of Congress on major legislative issues involving a wide range of subjects. The publication contains no editorial opinion, and its contents and structure do not imply approval or disapproval of any members or their voting records.

The “voter education” activity of Organization A is not prohibited political activity within the meaning of section 501(c)(3) of the Code.

SITUATION 2

Organization B has been recognized as exempt under section 501(c)(3) of the Code by the Internal Revenue Service. As one of its activities in election years, it sends a questionnaire to all candidates for governor in State M. The questionnaire solicits a brief statement of each candidate’s position on a wide variety of issues. All responses are published in a voter guide that it makes generally available to the public. The issues covered are selected by the organization solely on the basis of their importance and interest to the electorate as a whole. Neither the questionnaire nor the voter guide, in content or structure, evidences a bias or preference with respect to the view of any candidate or group of candidates.

The “voter education” activity of Organization B is not prohibited political activity within the meaning of section 501(c)(3) of the Code.

SITUATION 3

Organization C has been recognized as exempt under section 501(c)(3) of the Code by the Internal Revenue Service. Organization C undertakes a “voter education” activity patterned after that of Organization B in Situation 2. It sends a questionnaire to candidates for major public offices and uses the responses to prepare a voter guide which is distributed during an election campaign. Some questions evidence a bias on certain issues. By using a questionnaire structured in this way, Organization C is participating in a political campaign in contravention of the provisions of section 501(c)(3) and is disqualified as exempt under that section.

SITUATION 4

Organization D has been recognized as exempt under section 501(c)(3) of the Code. It is primarily concerned with land conservation matters.

The organization publishes a voter guide for its members and others concerned with land conservation issues. The guide is intended as a compilation of incumbents’ voting on selected land conservation issues of importance to the organization and is factual in nature. It contains no express statements in support of or in opposition to any candidate. The guide is widely distributed among the electorate during an election campaign.

While the guide may provide the voting public with useful information, its emphasis on one area of concern indicates that its purpose is not nonpartisan voter education.

By concentrating on a narrow range of issues in the voter guide and widely distributing it among the electorate during an election campaign, Organization D is participating in a political campaign in contravention of the provisions of section 501(c)(3) and is disqualified as exempt under that section. Revenue Ruling 78-248.

The IRS has indicated there are several types of activities which are considered inappropriate for 501(c)(3) or 501(c)(4) organizations: (1) the endorsement of candidates, (2) making donations to a candidate’s campaign, and (3) engaging in fund raising on behalf of a candidate. However, if the “voter education” activity is neutral in content and format, the nonprofit’s tax-exempt status will not be jeopardized.

Churches and other nonprofit organizations can clearly be involved in the political process. It would literally be impossible for such organizations not to be involved in the political process because the viewpoints and issues advocated by churches and nonprofit organizations naturally have political consequences. To avoid the political process is to limit the effectiveness of churches and nonprofit organizations. The United States Supreme Court has recognized that “churches frequently take strong positions on public issues including...vigorous advocacy of legal or constitutional positions. Of course, churches as much as secular bodies and private citizens have that right.” Walz v. Tax Commission, 397 U.S. 664, 670 (1970).