IRS Addresses Definition of Political Activity

As good leaders in the nonprofit industry, we know that participating directly or indirectly or intervening in a political campaign on behalf of, or in opposition to, a political candidate is a huge "No No."  Activities that are direct participation or intervention in a political campaign include:

• giving a candidate or political party cash, property, the free use of facilities, or free services; and
• publishing or distributing written or printed statements or making oral statements on behalf of, or in opposition to, candidates.

Basically, the nonprofit's leaders must not use the organization's financial assets, facilities, or personnel in any way and should clearly indicate that their actions or statements are entirely their own and not the organization's. However, the rules against political campaign activity do not prevent an organization's officers, directors, or other leaders from expressing their personal views, as individuals, on a candidate, a political party, or a campaign.

A recent letter from the IRS may shed some additional light on what is acceptable and what is not.  In the letter, the IRS discussed its findings in response to a complaint that the nonprofit had participated in the 2006 Texas gubernatorial re-election campaign of Governor Rick Perry. The nonprofit organization financially sponsored six pastor's conferences that featured selected candidates (but not all candidates) speaking on moral issues of interest to the religious leaders who attended them.

The IRS reviewed copies of several speeches given at the pastor's conferences by candidates.  Because the speeches did not appear to have been made by the speakers in their capacity as a candidate and since there was no vote solicitation and no appeal to sway anyone on any issues, the IRS found that the nonprofit did not break the rules.

The IRS also found that while several voter registration drives were conducted in conjunction with the conferences, there was no evidence of attempts to influence legislation or support candidates by the nonprofit organization.
Normally, all candidates seeking the same public office must be given an equal opportunity to participate in an organization's function.  It this case, only selected candidates were invited to participate.  But it isn't necessary to invite a candidate's opponent when he or she is invited to speak in a noncandidate capacity.

As you can see from this one example, this is a very delicate area of activity for nonprofit organizations.  Tread carefully.