Reminder to 501c3 Organizations - No Political Activity!

The presidential campaign has been heating up and is heading for the home stretch.  This is an exciting time in our nation.  Many charitable organizations have mission statements that often bespeak political leanings, perspectives, priorities and philosophies.  Please remember that all 501c3 organizations are "precluded from, and suffer loss of exemption for, engaging in any political campaign on behalf of, or in opposition to, any candidate for public office."  See IRS site.  Furthermore, "contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity."  See IRS site.  This means that political activity is absolutely prohibited for 501(c)(3) organizations, and will lead to revocation of exempt status and the imposition of certain excise taxes.

Prohibited political activity includes (but is not limited to):

• Contributions to political campaign funds;
  
• Written or oral statements in support of or in opposition to a candidate;
  
• Candidate rating (regardless of the objectivity of the criteria used for the evaluation);
  
• Offering resources such as mailing lists, office space, or other services available only to a favored candidate;
• Establishing Political Action Committees.

501c3 organizations can engage in certain non-partisan educational activities such as public forums open to all candidates, voter registration and publication of voting records of candidates. 

Bottom Line: 501c3  organizations should not engage in any political activity and should not engage in the permissible activities without consulting with counsel or other experts.  

Please contact me with any questions or visit my website for more information.