Nonprofits and Elections: What NOT to Do as a 501c3!
One of the joys of our democracy is the barrage of emails, texts, calls, and ads to engage us in elections.
On one hand, it’s obnoxious. On the other hand, the alternative is worse: no one caring about my vote, opinion, or money.
And so it goes.
Anyone affiliated with nonprofit work is probably familiar with one of the cardinal rules: no electioneering.
It will be very tempting to use your own voice or your organization's resources to guide, educate, nudge, register, and persuade people to vote this fall. Be careful.
What the IRS Says About Elections for 501c3 Nonprofits
Every state has its own rules, but the IRS is the final authority. There are many 501c organizations in the US. All of them are exempt from income taxes, but not all get to tell their donors that donations are 1) secret and 2) eligible for tax deduction. This is the benefit of being a 501(c)(3) nonprofit.
For 501(c)(3) organizations, the most important rule is this [in my own words]: "Do not do anything to influence the outcome of a candidate-centered election."
What 501c3 Nonprofits Need to Know About Elections – in Plain Language
Let's break down what exactly this means. [I'm not a lawyer, but I know some things].
Charitable nonprofits (in some cases) can register people to vote and then educate voters, but they must follow the law, and you must not do this in a way that influences the outcome for one party or candidate over another.
Charitable nonprofits should not spend a minute or a dollar doing anything to preference or deter the election of a candidate or person. This means not letting a candidate use your offices for calls, meetings, or anything.
The closer to the election you get (like now), the riskier an organization's behavior and expenditures are. Anyone can report them, so I strongly recommend getting advice before lifting your organization’s voice until election day.
Charitable nonprofits can do limited lobbying (check your state law), but not too much. This means they can generally work to support and oppose ballot measures or referendums because those are policies, not candidates. In a ballot measure, a 501c3’s work to persuade people is lobbying, not electioneering. Please stay within your state's rules!
Anyone acting on behalf of your organization can get your organization in trouble, so remind your board, staff, volunteers, and others that no one is allowed to “influence the outcome of a candidate-centered election.” Put it in writing to cover your *ss.
