Election Year Pitfalls for Charities

By Mitzi Cass, CPA

With the 2012 elections fast approaching, charitable organizations need to be cognizant of actions that can be construed as political campaign activities.   Organizations organized under IRS Code Section 501(c)(3) are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, any candidate for public office. Charities, educational institutions and religious organizations, including churches, are included under this code section.

Prohibited actions include endorsing any candidate, making donations to their campaign, engaging in fund raising, or becoming involved in any other activities that may be beneficial or harmful to any candidate. In addition, activities that encourage people to vote for or against a particular candidate on the basis of partisan criteria are also violations.

Leaders and other individuals within the organization, including board members, are free to express their own political views as long as they are not making the comments while in their official capacity or where it appears they are speaking on behalf of the charitable organization.  

Whether an organization is engaging in prohibited political campaign activity depends on all the facts and circumstances in each case. If conducted in a nonpartisan manner, the following are examples of allowed political activities: