Nonpartisan Voter Guides for Churches
and Nonprofit Organizations
By Mathew
D. Staver, Esq.
Copyright © 1995 - 2004
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).
For a
more detailed analysis of political activity of nonprofit organizations, call
Liberty Counsel at 800-171-1776 or visit the web site at www.lc.org.
The
information contained herein in not intended to render legal advice. Factual
and legal issues may arise that must be considered in each circumstance. If
legal advice is necessary, the services of a competent attorney should be
sought. |