(h/t The Nonprofit Village)
With the elections just a few months away, political campaigns are in full swing, and the IRS is poised to vigorously pursue any complaints made against nonprofits regarding improper political activity. Nonprofit organizations exempt from tax under section 501(c)(3) of the Internal Revenue Code, including churches and other religious organizations, are prohibited from intervening on behalf of, or in opposition to, candidates for local, state or national office. The stakes are high: a nonprofit that violates the rule against political intervention is subject to an excise tax on the amount expended on the campaign activity; more seriously, the organization risks losing its tax-exempt status. It is important that nonprofits understand the complex rules and highly nuanced distinctions employed by the IRS in enforcing its rules. The D.C. Bar Pro Bono Center has updated its detailed legal alert to help guide nonprofits through this potential minefield. For more information about the rules regarding impermissible campaigning, read Monitoring Your 501(c)(3) Organization’s Activities With Respect to Political Campaigns.
