Election-Related Activities and 501(c)(3) Nonprofits

1. Election-Related Activities and 501(c)(3) Nonprofits

2. Key Benefits of Electoral Activities • It complements legislative, regulatory and administrative advocacy work. • It raises the visibility of an organization’s issues before the voting public. • It engages citizens in the democratic process. • It builds key relationships with future policymakers. www.clpi.org

3. Key Points About Electoral Activities • 501(c )(3) charitable organizations are absolutely prohibited from intervening in support of, or opposition to, a candidate. • However, 501(c)(3)s do not have to sit on the sidelines if they participate in electoral activity in a scrupulously nonpartisan manner. • (Note: This tutorial refers to 501(c)(3) nonprofits as “public charities” because this is the term the IRS often uses for these organizations.) www.clpi.org

4. The Principle of Non-Partisanship • Nonprofits may not support or oppose candidates or political parties • Unlike the lobbying law that has wide latitude for participation, there is a strict prohibition against partisan political activity by charitable nonprofits. • The IRS can revoke tax-exemption for a single violation. www.clpi.org

5. A Few Cardinal Don’ts • Don’t provide cash contributions or in-kind office space or services for candidates or campaigns. • Don’t endorse or otherwise give a candidate official support. A public charity’s individual staff members can give personal support, but not in the name of their organization. • Don’t allow political fundraising, distribution of campaign literature, or other campaign activity to occur on the nonprofit’s premises. www.clpi.org

6. A Few Cardinal Do’s • Charitable nonprofits may continue normal lobbying activities during the legislative session even when it is during a political campaign (except for broadcast ads during an election). • If you include candidates in an event, such as a candidate forum, include all candidates on equal terms. www.clpi.org

7. Permissible Nonpartisan Activities for 501(c)(3)s • Voter Registration • Candidate Forums • Candidate Questionnaires • Voting Records • Voter Guides www.clpi.org

8. Voter Registration • Choosing a Target Group • It’s okay to target historically disadvantaged populations • It’s not okay to target ideological groups: liberal, conservatives, etc. • Choosing a Geographic Area • It’s okay to target an area because it has historically low voter turnout • It’s not okay to target an area because it has a close race • Choosing Content • It’s not okay to state positions on the issues www.clpi.org

9. Can a 501(c)(3) invite candidates to a public forum? YES, if it: • Invites all candidates; • Conditions the forum on the appearance of at least two candidates for the same office; • Is evenhanded in promotion; • Doesn’t state its views or comment on candidates’ views; and • Gives all candidates equal opportunity to answer questions. www.clpi.org

10. Can a 501(c)(3) publish information from the public forum? • Yes, in its newsletter, if: • published regularly, and • circulation is limited to its members. • Candidates should be given equal opportunity to give their views. www.clpi.org

11. What about questionnaires to candidates? • Nonprofits with broad range of concerns (i.e., League of Women Voters) can safely disseminate responses from questionnaires. • Questions must: • cover a broad range of concerns, • be framed without bias, and • given to all candidates. www.clpi.org

12. What about distributing incumbents’ voting records? • Okay, but only if: • Done throughout the year, not just during the campaign; • Covers a broad range of legislation; • Does not editorialize or imply approval or disapproval of any incumbent or their voting record; and • Does not identify whether a given incumbent is up for re-election. www.clpi.org

13. Voter Guides • The key is nonpartisanship. • The IRS looks to see if the writing and format are biased in any way, e.g.,: • flattering or unflattering candidate pictures, • biased descriptions of candidates’ records, • selection of a narrow range of issues that favor one candidate, • selection of only issues on which the 501(c)(3) has taken a position. www.clpi.org

14. When does an election campaign begin? • When someone formally or informally announces their candidacy for office, including by: • A public announcement, • An official filing, • Forming a fundraising or exploratory committee, or • Being the object of a “Draft X for Y Position” campaign. www.clpi.org

15. What about visits by candidates to a public charity’s facility? • Okay, if initiated by the candidate, but all other candidates should also be invited. • Candidates cannot fundraise or distribute campaign literature on your premises. www.clpi.org

16. Now, here is a quiz….. www.clpi.org

17. A local charity is conducting a bike-a-thon fundraiser during the Congressional elections. At the beginning of the event, a candidate for Congress shows up, unannounced, wants to participate in the bike-a-thon, make a brief two minute campaign statement, and pass out campaign literature. • Is this allowed? www.clpi.org

18. Answer... • The candidate can participate in the bike-a-thon as a private citizen, but not as a candidate for public office. She cannot make a statement or pass out campaign literature. The nonprofit leaders should make this clear to the candidate. www.clpi.org

19. Is it legal? • A local public charity is conducting a voter registration drive outside its facility. • Along with voter registration instructions, volunteers give out a list of candidates who have voted for bills supported by the charity over the last year. www.clpi.org

20. Answer... • No, this is not legal. The IRS could read this as an implied endorsement for the candidates the charity has identified. • Alternative: The charity could create a voting scorecard, but must: • Set up a system where it is tracking votes of elected officials or a broad range of issues; • Disseminate the score cards throughout the year without bias; and • Not give out this information during voter registration. www.clpi.org

21. State law should be consulted for further restrictions, if any, on activities relating to state or local elections. • Federal election law also applies to federal election activities. www.clpi.org

22. Still have questions regarding election-related activities? • Contact CLPI at (202) 387-5048 or at centerforlobbying@clpi.org. • Visit CLPI’s Web site for additional resources on election-related activities at www.clpi.org. www.clpi.org