Protecting Nonprofit Nonpartisanship

For more than 60 years, an important provision in the federal tax code has successfully protected charitable nonprofits, religious congregations, and foundations from being hounded by politicians, political operatives, and paid political consultants seeking political endorsements, financial contributions, and more. That provision is being threatened by the President, who recently vowed to “get rid of and totally destroy” the protection, and legislation in Congress seeking to completely repeal or substantially weaken it. Although couched as attempts to promote religious freedom and free speech, the legislative proposals would have the effect of politicizing and thereby erasing the public’s high trust in charities, houses of worship, and foundations to benefit politicians and paid political consultants.

Where We Stand

“The National Council of Nonprofits has long held that the public’s overall trust in the sector would diminish and thus limit the effectiveness of the nonprofit community if individual 501(c)(3) organizations came to be regarded as Democratic charities or Republican charities instead of the nonpartisan problem solvers that they are.”

Public Policy Agenda for 2017

The National Council of Nonprofits has consistently expressed our position in favor of “preserving the integrity of charitable nonprofits by supporting the tax-law ban on electioneering and partisan political activities.”

Community Letter in Support of Nonpartisanship

A broad, nationwide coalition of 501(c)(3) organizations, made up of charitable nonprofits, including religious institutions and foundations, delivered a clear message to Congress on April 5: maintain the current law that protects nonprofits organizations from being hounded for partisan political contributions and endorsements. The Community Letter in Support of Nonpartisanship, signed by nearly 4,500 organizations from every state and every segment of the charitable and foundation communities, makes a strong statement in support of nonpartisanship and urges those who have vowed to repeal or weaken this vital protection to leave existing law in place for nonprofit organizations and the people they serve. See News Release.

Take Action

Individuals can support nonpartisanship and help defeat efforts in Congress to repeal or weaken current protections in the law (known as the “Johnson Amendment”) by forwarding the Community Letter in Support of Nonpartisanship to their U.S. Senators and Representatives. Individuals and organizations are invited to spread the word on social media as well. (Sample Tweet: #Nonprofits are effective because they focus on #CommunityNotCandidates. Maintain #JohnsonAmendment https://www.givevoice.org/sites/default/files/community-letter-in-support-of-nonpartisanship.pdf)

Status

President Trump vowed at the National Prayer Breakfast in February that he intends to “get rid of and totally destroy” the protection in federal law that keeps charitable nonprofits, including religious institutions and foundations, away from engaging in partisan, election-related activities, such as using charitable assets for political contributions and endorsing candidates for elective office. One bill in Congress, H.R. 172 , would completely repeal the “no partisan politicking” provision, subjecting nonprofits to demands/requests to get involved in partisan political electioneering, including using charitable, religious, and foundation assets to make political donations. Such a move would not only allow people to get tax deductions for making political donations, but also force the public to effectively be subsidizing that speech by others. Two other bills, S.264 and H.R. 781 , would substantially weaken the law by allowing leaders of individual 501(c)(3) entities to endorse candidates for public office and engage in some partisan electioneering activities.

Why It Matters

The tax-law provision now being challenged by politicians is the final clause of Section 501(c)(3), which provides that in exchange for tax-exempt status, a charitable nonprofit, foundation, or religious organization may “not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.” Since 1954, that language has served to protect charitable nonprofits and foundations – and the donating public. It helps to ensure that organizations dedicated to the public good in communities remain above the political fray.

Our society is better today, because 501(c)(3) organizations operate as safe havens from the caustic partisanship that currently is bedeviling our country, as places where people can come together to actually solve community problems rather than just posture and remain torn apart. Repeal or revision of the law would damage the integrity and effectiveness of all charitable nonprofits and foundations.

Background

Congress first exempted from taxation organizations operating “solely for charitable, religious, or educational purposes” in 1894. Since then, Congress has added amendments expanding the list to include several other entities that can qualify for tax exemption. Congress also has added three major conditions: to receive the benefits of tax exemptions, those organizations cannot pay out profits (no private inurement), spend a substantial part of their activities lobbying, or engage in partisan politics (the provision at issue now). Organizations can do any of those, of course, but then they lose their tax exempt status.

Congress adopted the main part of the provision being challenged now in 1954 when Senate Minority Leader Johnson offered it as an amendment – which is why it is sometimes called “the Johnson Amendment.” Additional language was added to that provision in 1978 (the “or in opposition to” parenthetical): “does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.”

Statements of Support for Nonprofit Nonpartisanship

Additional Resources

Protecting Nonprofit Nonpartisanship | Executive Order, National Council of Nonprofits, May 18, 2017
Protecting Nonprofit Nonpartisanship | Legislative Challenge, May 18, 2017
It’s “Go Time” For Protecting Nonprofit Nonpartisanship, National Council of Nonprofits, May 8, 2017
National Council of Nonprofits Statement on "Religious Freedom" Executive Order, National Council of Nonprofits, May 4, 2017
Statement of Tim Delaney Before the House Oversight and Government Reform Committee Hearing on Examining a Church's Right to Free Speech, National Council of Nonprofits, May 4, 2017
Protect Nonprofit Nonpartisanship: Oppose Efforts to Repeal or Weaken the Johnson Amendment, Issue Summary, National Council of Nonprofits, April 11, 2017
Community Letter in Support of Nonpartisanship, April 5, 2017
Nonprofits to Congress: Keep Partisan Politics Away from Nonprofit Missions, National Council of Nonprofits, April 5, 2017
Protecting Nonprofit Nonpartisanship | Common Questions and Answers, National Council of Nonprofits, March 2, 2017
Protecting Nonprofit Nonpartisanship | Infographic, National Council of Nonprofits, March 2, 2017
Protecting Nonprofit Nonpartisanship | Initial Commentary, National Council of Nonprofits, February 5, 2017
Debating the Johnson Amendment, Alliance for Charitable Reform, Washington, DC, June 7, 2017
Keep nonprofits nonpartisan, The Bismarck Tribune, Bismarck, ND, May 28, 2017
Nonprofits should be free of partisan politics, Concord Monitor, Concord, NH, May 21, 2017
Keep non-profits out of partisan politics, AZCentral, Phoenix, AZ, May 7, 2017
Statement of The Jewish Federations of North America Submitted to the House Oversight Subcommittee on Government Oversight Hearing, The Jewish Federations of North America, May 4, 2017
Keep Nonprofits Nonpartisan, New York Nonprofit Media, New York, NY, May 3, 2017
A Message to Congress - Keep Charities and Foundations Nonpartisan, NJSpotlight, Montclair, NJ, April 19, 2017
Thousands of Nonprofits to Congress: Don't Repeal the Johnson Amendment, Associations Now, Washington, DC, April 5, 2017
Religious groups urge Congress to keep limit on church political activity, The Hill, Washington, DC, April 4, 2017
Faith groups to Congress: Do not politicize our houses of worship, Baptist Joint Committee for Religious Liberty, Washington, DC, April 4, 2017
Nearly 100 religious groups tell Congress: Keep the 'Johnson Amendment', Baptist Joint Committee for Religious Liberty, Washington, DC, April 4, 2017
Some nonprofits worry politics could creep into their work, WITF, Harrisburg, PA, April 3, 2017
National Poll Finds That Americans Support the Johnson Amendment to Protect Nonprofit Nonpartisanship, Independent Sector, Washington, DC, March 30, 2017
Politicians Should Look Elsewhere for Endorsements and Campaign Contributions, Kentucky Nonprofit Network, Lexington, KY, March 29, 2017
Take Action Today to Protect the Nonprofit, Religious, and Foundation Communities!, Nonprofit Law Blog, San Francisco, CA, March 27, 2017
Remodeling the wall between church and state, The Virginian-Pilot, Norfolk, VA, March 26, 2017
Keep partisan politics out of the nonprofit sector, The Hill, Washington, DC, March 22, 2017
Charitable nonprofits shouldn't become political, Bozeman Daily Chronicle, Bozeman, MT, March 7, 2017
Charity Inc.: Let's keep nonprofit sector neutral, The Journal Record, Oklahoma, OK, March 1, 2017
Keep clean lines between charity, politics, Missoulian, Missoula, MT, March 1, 2017
Policy Update: Johnson Amendment, Forum of Regional Associations of Grantmakers, March 2017
Religion as a cover for dark money, The Wichita Eagle, Wichita, KS, February 21, 2017
Trump Wants to Repeal the Johnson Amendment: What Nonprofis Need to Know, Nonprofit PRO, Philadelphia, PA, February 16, 2017
Don't Weaken the Existing Ban on Electioneering by 501(c)(3) Organizations, The Dodge Blog, Morristown, NJ, February 16, 2017
Politicize our charities and churches? No, thanks, Religion News Service, Washington, DC, February 9, 2017
The Johnson Amendment - Let's Keep It Intact!, Oklahoma Center for Nonprofits, February 9, 2017
Letter to Congress - Johnson Amendment, Council on Foundations, Washington, DC, February 9, 2017
Politics and Charities: Do Not Mix, Roger Colinvaux, Chronicle of Philanthropy, November 2, 2016
501(c)(3) Tax Guide for Churches & Religious Organizations (Rev. 8-2015), IRS Publication 1828
Restriction of Political Campaign Intervention by Section 501(c)(3) Tax-Exempt Organizations, IRS website

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