Election Rules for Nonprofits

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Election Rules for Nonprofits
NAKASEC Web Training
December 13, 2007
General Rule for 501(c)(3)s:

No candidate support or opposition

 Who is a Candidate?

Officially running

Considering running

Draft efforts
For any
public office
 What is the penalty?

ƒDenial or revocation of tax-

exempt status, and
ƒ The imposition of excise taxes
Is the activity nonpartisan?

FACTS & CIRCUMSTANCES TEST

 What can a 501(c)(3) do?

Permissible
501(c)(3) Election
Activity

Issue advocacy
Voter registration &
GOTV
Voter education
Candidate education
Individual Activity
 What can a 501(c)(3) do?

Permissible
501(c)(3) Election
Activity

Issue advocacy
Voter registration &
GOTV
Voter education
Candidate education
Individual Activity
 Permissible Voter Registration & GOTV

501(c)(3)’s

No reference to any
candidate or
political party

No suggestion who to
vote for

Must make services

available to everyone
 Targeting Voter Registration
& GOTV
501(c)(3)’s

Target for nonpartisan

purpose

ƒLocation

ƒAudience
 Targeting Voter Registration
& GOTV

Messages cannot suggest a “correct position”

Vote green. Register here.

You can have an impact on the decisions
affecting your life. Register to vote now.

Let’s get out the pro-choice vote. Register here.

 Targeting Voter Registration
& GOTV

Over 170,000 Latinos fought in Vietnam.

Today over 5,000,000 Latinos are not registered to vote.
THEY SAY WE DON'T VOTE.
What do you say?
DICEN QUE LOS LATINOS NO VOTAN.
¿Que dices tú?
 What can a 501(c)(3) do?

Permissible
501(c)(3) Election
Activity

Issue advocacy
Voter registration &
GOTV
Voter education
Candidate education
Individual Activity
 Candidate Questionnaires
& Voter Guides

Tips

No pledges
Broad range of
issues
Distribute to all
Unbiased questions
No editing
 Candidate Debates & Forums

Tips

Invite all viable

candidates
Apply the rules fairly
Impartial moderator
Unbiased audience
Broad range of
issues
Unbiased questions
 Candidate Appearances

Invite because of
candidacy
Invite for another reason
Equal opportunity required No equal opportunity required

No contextual favoritism Avoid mentioning candidacy

Invite viable candidates Don’t time to coincide with election

Disclaimers and letter

 Legislative Scorecard or
Voting Record

Not timed to coincide with

an election
Includes all legislators
Broad range of issues
Commentary allowed
Exculpatory Language
No reference to who is
incumbent
Party Identification OK
 What can a 501(c)(3) do?

Permissible
501(c)(3) Election
Activity

Issue advocacy
Voter registration &
GOTV
Voter education
Candidate education
Individual Activity
 Candidate Education

Permissible
501(c)(3) Election
Activity

Offer to all

Use only what is

already gathered
 Criticizing Incumbents

Permissible
501(c)(3) Election
Activity

Continue ongoing
criticism

Focus on the
legislative issues
 Individual Activity

Just Do It!

Okay if acting in their

own capacity
Not on company
time
Organization cannot
ratify the individual’s
acts expressly or by
implication
 Business Dealings

Business Dealings

Mailing Lists

Office Space

Ads
 Political Activity Spectrum

501(c)(3)
Activity

Purely Supporting or Express Contributions

Nonpartisan Opposing a Advocacy to Candidates
Activity Candidate
 General rule for 501(c)(4)s

You can do everything

a 501(c)(3) can do

PLUS some Partisan

Political Activity
Federal Law

501(c)(4)s

Internal Revenue
Code

Federal Election Law

 What can a 501(c)(4) do?

Nonpartisan Partisan electoral

election-related work
activity
Cannot be
Same activity as primary activity
501(c)(3)s
Tax
consequences
Same standards
to determine File IRS Form
whether the 1120-POL
activity is
nonpartisan Federal or state
election laws
 What is partisan activity?

501(c)(4) Partisan
electoral work

Endorsements
tax
(f )
Contributions 2 7
5
Statements of
support or
opposition

Pledges

Work with 527s

 State vs. Federal
Election Law
State Law Federal Law

Ballot measure No regulation of

activity ballot measures

Contributions No contributions

Coordination No coordination

Electioneering No electioneering
communications communications
 Political Activity Spectrum

501(c)(3)
Activity

501(c)(4)
Activity
Primary Secondary
>51% <49%

Purely Supporting or Express Contributions

Nonpartisan Opposing a Advocacy to Candidates
Activity Candidate
 AFJ Services

Lawyers on call:
• advocacy@afj.org
• 1-866-NPLOBBY (675-6229)
Materials, Info & Trainings:
• www.afj.org
• www.allianceforjustice.org/blog