Congregation Education Project

Organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, including churches and other religious organizations, may not directly or indirectly participate or intervene in any political campaign for or against candidates for elective public office. Churches and other 501(c)(3) organizations that fail to abide by this rule risk incurring tax penalties and potential loss of their tax-exempt status.

In the past the Internal Revenue Service's approach has been to provide basic information about the rules and tread lightly when it comes to enforcement of them. For example, the IRS has provided general, user-friendly guidance for churches and other religious organizations, chiefly the IRS Tax Guide for Churches and Religious Organizations [PDF | 1.4MB]. And, while the IRS has issued a number of warnings to 501(c)(3) organizations, the Service has only revoked the exemption of a few churches and religious organizations. In 2002, the director of the exempt organizations branch of the IRS testified that the Service had only revoked the tax-exemptions of two churches and four or five religious organizations in the past 20 years. Read more about a case in which a church's tax-exempt status was revoked.

Recently, however, the IRS announced that it had found a rising number of problems in this area. In a speech made on February 24, 2006, in Cleveland, Ohio, IRS Commissioner Mark Everson spoke of "increasing political intervention in the 2004 [election] cycle" by charities and churches. In response, the Internal Revenue Service has said that it intends to increase its educational and enforcement efforts in this area. As part of that effort, the Internal Revenue Service released additional educational materials and information about the processes the IRS uses.

On this web page (see below) you will find a series of questions and answers that uses some brief case studies to provide information about the electioneering prohibition and the procedures the IRS uses to enforce the prohibition. The Center also offers a series of links to other user-friendly IRS resources on these issues, including links to relevant webcasts of the "Tax Talk" program and information about workshops the IRS is sponsoring on these issues.

Please feel free to contact us if you have comments or questions about these activities. You may e-mail us at rpa@wfu.edu

Questions and Answers on the Electioneering Prohibition

This is a brief set of questions and answers providing information about the electioneering prohibition that 501(c)(3) organizations must observe and the procedures the IRS uses to enforce that prohibition. It draws on the fact sheet released by the IRS on February 24, 2006, the IRS Tax Guide for Churches and Religious Organizations [PDF] and other technical materials.

A few caveats about this information. First, this information is intended to help congregations exercise their rights while also avoiding IRS scrutiny. It does not attempt to teach them to walk on the razor's edge of the law because this could invite IRS scrutiny.

Second, this information is presented with churches and other houses of worship in mind. Guidance may be somewhat different for other 501(c)(3) organizations, not because the rules are different but because the surrounding facts and circumstances are sometimes different.

Third, the IRS has not addressed all these matters in the specific ways they are presented here. Where the IRS hasn't squarely addressed a particular issue, we analogize from similar situations the IRS has addressed.

Fourth, these materials provide general legal information, not legal advice. Those seeking legal advice should seek a licensed attorney who may address the specifics of their situation.

Last, but certainly not least, it is important to remember that not everything that is legal is right. This information provides guidance on what the law allows, not what ethics or theology require. Non-legal as well as legal issues should be considered when making decisions on these matters.

The questions below address the following issues (click on an issue to go to the relevant question(s)):

Candidate Endorsements by Clergy in Their Individual Capacities

I'm a pastor of a church and I've been invited to speak at a press conference in which various city leaders will endorse a particular candidate for mayor. I would like to attend and offer my personal endorsement of this candidate. May I do so?

Yes, as long as you take certain steps to make clear that your endorsement is a personal one, not one made on behalf of the church.

The electioneering ban applies only to actions attributable to the 501(c)(3) organization, not to actions attributable to individuals. The Internal Revenue Service has said that partisan comments by leaders of such organizations in official organization publications or at official functions are attributable to the organization and thus forbidden by the rules. But, outside that context, leaders may become involved in campaigns and endorse candidates when they "do not in any way utilize the organization's financial resources, facilities, or personnel, and clearly and unambiguously indicate that the actions taken or the statements made are those of the individuals and not of the organization." [PDF]

The IRS advises that, "[t]o avoid potential attribution of their comments outside of organization functions and publications, organization leaders who speak or write in their individual capacity are encouraged to clearly indicate that their comments are personal and are not intended to represent the views of the organization."

Thus, at the outset of your remarks, you should state that you are speaking only for yourself, not for the church. You also should ensure that church resources or personnel are not used in making the statement. Among other things, that means you should not ask the church secretary to type your remarks and you should not offer to hold the press conference at the church (nor should you allow that to happen in any case).

Campaign Sign on Yard of Church Parsonage

I'm a pastor who lives in a church parsonage. I personally support candidate Smith for the U.S. Senate. I would like to place a campaign sign for this candidate in the front yard of the parsonage. May I do so?

It would be wise to refrain from posting such a sign on the yard of the church parsonage because the property is owned by the church. Thus, posting such a sign could be seen as an indication that the church itself is taking a position in favor of a candidate in an election, which is prohibited by the rules.

Campaign Signs on Church Yard

When we arrived at our church this evening, we found some campaign signs posted on the church yard and handbills in the windshield wipers of the cars that had been parked in the church parking lot. We took the signs down and collected the handbills and put them in the trash. Unfortunately, however, we have been told that a reporter took pictures of the church with the signs before we arrived at church. We are concerned about the story the reporter might write. We did not encourage or permit these signs to be placed on church property. What should we do?

You did the right thing by taking all the signs down promptly. The next step should be placing a call to the reporter to ensure that he or she has your statement about this incident. Further, you should keep the written statement in a file in case anyone should ask you about the incident in the future. As long as it is clear that the church did not sanction this activity, there should not be a problem.

Candidate Endorsements in Church Publication

In October, it's my turn to write the deacon's column in our church newsletter. I would like to praise a particular candidate for elective public office for his stands on certain policy issues.

The deacon's column is a regular feature in our church's newsletter that allows each deacon a turn to speak about what is on his or her heart. For example, some deacons have written about their personal views on theology, their respective jobs or their community ministries.

In my column, I would specifically state that I'm only sharing my personal views, not speaking on behalf of the church. I also don't plan to tell people to vote for this candidate, although I will highlight the wise stands he has taken on various issues and note that he is running for reelection. May I do this?

No. Even though the column would clearly be attributed to you, your statement would appear in an official publication of the church and thus is attributable to the church. Your praise for a particular candidate for elective office for his stands on certain policy issues would be very likely to be seen as an implicit endorsement of that candidate. The rules prohibit not only explicit endorsements (i.e., "Vote for Candidate X"), but also implicit endorsements.

Candidate Appearances at House of Worship

I'm a senior pastor of a church. Today a presidential candidate called and asked for ten minutes to speak at our church this coming Sunday, the last Sunday before the election. The candidate's staff has assured me that this will not violate the campaign legal rules. May I allow the candidate to speak to the congregation during the Sunday service?

No. A church may not selectively invite candidates to speak to their congregations. Given that there is only one Sunday before the election, there is not time to issue a comparable invitation to the other presidential candidate(s).

What is often not understood is that only the congregation violates the law when it endorses a candidate. In other words, the law does not prohibit the candidate from appearing at a church in this manner, but it does prohibit the church from allowing it. Thus, the church should not be swayed by reassurances from a candidate or his or her campaign staff; it should make an informed decision for itself based on the laws that apply to the organization.

It's the summer before the November elections and our church has decided that we would like to invite the candidates who are running for state legislature to speak to our congregation during September and October. May we do so?

Yes, so long as the church follows certain guidelines. If a church wishes to invite candidates to speak to the congregation, it must issue comparable invitations to all candidates seeking the same office. In other words, a church may not invite one candidate to speak during the well-attended Sunday morning service and another candidate to speak to a sparsely-attended Sunday school class. It also should not invite one candidate three weeks before the date and invite another candidate only days before the occasion. This is because these inequities demonstrate bias on behalf of the church toward one candidate and against another. Moreover, it must ensure that no church leader offers statements of support or opposition to the candidates in the context of these appearances before the congregation, and that no fundraising for the candidate occurs.

Candidate Forums at Houses of Worship

Our synagogue would like to host a candidate's forum in our sanctuary. What guidelines must we follow in order to do so?

A congregation may hold such a forum as long as it expresses no bias for or against certain candidates in the context of this forum. Thus, the forum must include discussion of a wide range of issues that the candidate would have to address if elected. This doesn't mean that candidates for mayor must be asked about foreign policy, but it should include questions on many of the hot topics at issue in the race. In particular, the questions should not be limited to a subset of issues about which the congregation has expressed an opinion because this could send a message of implicit endorsement of one candidate over another. Further, the questions themselves should not be slanted - they should be fair and non-partisan.

Moreover, each candidate should be given equal opportunity to address the issues and the moderator should ensure that his or her own comments do not express approval or disapproval of particular candidates.

Our church is holding a candidates' forum and has invited all the candidates that are seeking a particular public office. Three of the candidates have agreed to come, but one candidate has declined. May we still hold our forum?

Yes, you may hold your forum. At the outset of the event, a church leader should announce that all candidates were invited, but one candidate could not attend. No negative comments should be made by the church about the candidate who could not attend, and the congregation must ensure that its sponsorship of the forum is otherwise unbiased.

Our church would like to hold a candidates' forum in our sanctuary. In keeping with our theology, our congregation has taken stands on the issues of civil rights, economic justice and restraint in the use of military force. Thus, we would like the forum to focus mostly on these issues. May we do so?

No. As noted above, a candidates' forum must cover a broad range of issues, not just the issues on which the church has taken stands. The concern is that this narrowing of the issues would send a message of implicit endorsement for one candidate over another.

Candidate Appearances at Houses of Worship in Their Non-Candidate Capacities

A candidate for governor currently serves as lieutenant governor of our state. We would like to invite her to join us as a featured speaker for a series of special meetings we are holding on public issues that are of interest to our church. As lieutenant governor, we believe she has great expertise in dealing with these issues. May we issue this kind of invitation to her?

It would not be wise for the church to offer this kind of invitation to the lieutenant governor. The rules allow houses of worship to invite a person who is a candidate for office in what is called his or her "non-candidate capacity" (see below), but this example creates significant risk for the church. Although you say the church wishes to invite the candidate because of her expertise and position as a government official, it is very difficult to separate out that reason from the promotion of her candidacy that would inevitably result from her participation as a featured guest in these series of events. Moreover, the interpretation of the rules that allows candidates to be invited to 501(c)(3) events in their non-candidate capacities does not generally seem to contemplate a series of appearances by a candidate before the same group. In short, repeated appearances by one candidate (even if the stated reason is to include the person in their non-candidate capacity) would be very likely to look like an implicit endorsement of that candidate. The best course would be to refrain from making this kind of invitation and to consider holding a candidates' forum or issuing comparable invitations to all the candidates to address the congregation over a series of weeks.

We'd like to invite the chair of our city council to make brief remarks at the opening of our mosque's new community food bank. The chairman is currently running for re-election, but we don't intend to take a position on that matter. We'd simply like to invite him to make a few brief remarks in his capacity as a city leader about the good the food bank will do.

The rules allow a 501(c)(3) organization to invite a public figure to speak in his or her non-candidate capacity. In other words, a person may be invited to speak because she or he holds or formerly held a public office or is an expert in a non-political field, or because he or she has led a distinguished military, legal or public service career. However, if the candidate is invited to speak in this capacity, the mosque must take steps to ensure that no explicit or implicit endorsement of the candidate occurs. For example, the IRS says that the mosque should choose the speaker "solely for reasons other than candidacy for public office." It also notes that the individual must speak only in a non-candidate capacity and that neither the individual nor the representatives of the organization should make any mention of the candidacy. Further, the organization must ensure that no campaign activity, including fundraising, occurs in this context and that the organization "maintains a nonpartisan atmosphere on the premises or at the event where the candidate is present." Finally, the IRS notes that "the organization should clearly indicate the capacity in which the candidate is appearing and should not mention the individual's political candidacy or the upcoming election in the communications announcing the candidate's attendance at the event."

I'm the pastor of a large church near the governor's home. Last Sunday, the governor attended our worship services as a guest. The governor did not ask for time to speak during the service; she simply sat in the pew. During the visitor recognition part of the service, I noted that we were pleased that the governor could join us and she held up her hand and waived. I also recognized other visitors at the church at this time. The governor is currently in a race to earn another term in office. Did I violate the rules by recognizing the governor in this way?

As long as you simply recognized the governor as a visitor, there should be no concern about violation of the rules. It would be a different situation if you recognized the governor and asked the congregation to take note of the good work the governor had done when they go to the polls this fall. It also would raise red flags in this context if you complimented the governor, noted that she was in a tight race in the upcoming election and praised her for her stand on some controversial issues. Of course, all elected officials may be thanked for their public service, but the church must refrain from seeming to favor one candidate over another. The best course is to recognize the governor as you would any other guest and completely refrain from referencing her candidacy or the upcoming election.

Prohibited Implicit Candidate Endorsement or Permissible Issue Advocacy

I'm the senior pastor of a church. I strongly feel that one of the candidates in the race for president is highly preferable to another candidate, not because he belongs to a particular political party, but because he has much higher moral standards than his challenger. I would like to point this out from the pulpit, but I will also say that people should carefully consider these issues and vote their conscience. Would this violate the rules?

Yes. The rules do not concern themselves with the reasons why organizations prefer one candidate over another, they simply prohibit 501(c)(3) organizations from doing so. As a minister, you are free to make such an endorsement in your individual capacity. But you may not endorse candidates from the pulpit because any statements at official church events are attributed to the church. Your statement that people should carefully consider these issues and vote their conscience would not cure this problem.

Our congregation has taken stands on certain public issues. As the congregation's rabbi, I feel called to continue to preach about these issues at all times of the year, including election season. May I preach on these issues during election season, even if they are controversial issues that divide the candidates for a local race?

Yes. The safest way to do so would be to preach on the issues without naming the candidates or otherwise connecting your comments on the issues with the election.

The IRS has noted:

Under federal tax law, section 501(c)(3) organizations may take positions on public policy issues, including issues that divide candidates in an election for public office. However, section 501(c)(3) organizations must avoid any issue advocacy that functions as political campaign intervention. Even if a statement does not expressly tell an audience to vote for or against a specific candidate, an organization delivering the statement is at risk of violating the political campaign intervention prohibition if there is any message favoring or opposing a candidate.

The Service notes that statements may identify a candidate not only by mentioning the candidate's name "but also by other means such as showing a picture of the candidate, referring to political party affiliations or other distinctive features of a candidate's platform or biography."

According to the IRS, "[k]ey factors in determining whether a communication results in political campaign intervention include the following:

Even though the IRS states that it will consider all relevant facts and circumstances (including the above-stated factors) to determine whether issue advocacy constitutes an implicit candidate endorsement, the Service emphasizes that "[a] communication is particularly at risk of political campaign intervention when it makes reference to candidates or voting in a specific upcoming election."

Advocacy Regarding Nominees for Appointed Office

Recently there were some very high profile events in church sanctuaries addressing the fight over certain nominees to the U.S. Supreme Court. How is it possible that the groups that sponsored those events did not come under IRS scrutiny?

The rules prohibit 501(c)(3) organizations from taking positions for or against particular candidates for elective public office. They do not prohibit these organizations from taking positions on persons for appointed offices, such as judges. Thus, the law does not prohibit 501(c)(3) organizations from taking positions on Supreme Court nominees or nominees for heads of executive branch agencies. To the extent that these organizations lobby members of Congress on these or other issues, however, they must ensure that such lobbying is only an insubstantial amount of their overall activities. This insubstantiality limit on lobbying is another restriction on the activities of 501(c)(3) organizations.

Church Websites

Our church's website has a section on Christian citizenship that links to all the candidates who are running for a seat in the U.S. House of Representatives. However, next to one candidate's picture are some laudatory statements about this candidate's positions on various issues. There are no statements in favor or in opposition to the other candidates. Is this a problem?

Yes. The rules permit your church to feature links to all the candidates' websites, but it must not indicate a bias for or against any of the candidates. If the church wants to feature these links, it should link to all the candidates without further comment.

Our church's website links to the mayor's office because we provide volunteers for some of the social services that the city provides. The mayor is running for reelection. Do we need to discontinue the link until the campaign is over?

No, as long as nothing that is being linked to mentions the campaign and the church is not otherwise showing bias toward the mayor. If this is indeed a longstanding link that is intended to assist in the provision of charitable work, then the link furthers an exempt purpose of the organization, not a partisan purpose. It is important to remember, however, that website material can change very quickly. Thus, it would be a good idea to ask a church member to monitor the link to ensure that the content that is being linked to continues to be unrelated to the campaign.

Voter Registration/Get-out-the Vote Activities and Issue Advocacy

Our local church plans to launch a voter registration effort followed by a get-out-the-vote drive. These projects are not biased for or against any candidate in any way.

Our national church body has an office in Washington, D.C., that takes positions on various public policy issues, and they have provided us with position papers on these issues. When we register people to vote or drive them to the polls, is it permissible to give them a packet of information that includes these position papers?

The best course is to refrain from mixing opinionated discussions of policy issues with voter registration/get-out-the-vote activities. Each considered alone constitutes a permissible activity. Mixing them together, however, could suggest that the church is encouraging voters to vote for or against particular candidates. As the IRS has noted "[w]here there is a combination of activities, the interaction among them may affect whether or not the organization is engaged in political campaign intervention." Keeping these activities on separate tracks would avoid this concern.

Voter Guides

Another 501(c)(3) organization has given our church 300 copies of their voter guide. We are considering distributing these voter guides at our Wednesday night church dinner. May we do so?

It depends on the nature of the voter guide. 501(c)(3) organizations may prepare or distribute voter guides that are unbiased, but they violate their tax-exempt status if they prepare or distribute guides that are biased for or against particular candidates. Accordingly, even when an organization merely distributes, rather than produces, a voter guide, the organization must make its own determination about the appropriateness of the guide.

The IRS notes that "[t]he following factors are key considerations in whether a voter guide can be distributed to educate voters without violating the prohibition on political campaign intervention."

While the IRS emphasizes that it will consider all aspects of the voter guide's format, content and distribution in its analysis, it clearly states that "[i]f the organization's position on one or more issues is set out in the guide so that it can be compared to the candidates' positions, the guide will constitute political campaign intervention."

We contacted a fellow Muslim organization that produces voter guides and asked them to send us several boxes so that we may distribute them to the members of our mosque. Since that time, we have learned that this other group is a 501(c)(4) organization. May we distribute these voter guides?

A key difference between a 501(c)(4) organization and a 501(c)(3) organization is that a (c)(4) organization may engage in political campaigns for or against candidates for elective office as long as such intervention does not constitute the organization's primary activity. (Another difference is that, unlike contributions made to 501(c)(3) organizations, contributions made to 501(c)(4) organizations generally are not deductible as charitable contributions on donors' federal income tax returns.) If these voter guides are biased for or against particular candidates (and that seems very likely), then a 501(c)(3) organization may not distribute them.

Political Party Soliciting Church Directories

I'm a member of a church and a state political party. The political party has asked church members to forward their church directories. Will I jeopardize my church's tax-exempt status if I give my church directory to this political party? Even if I wouldn't jeopardize my church's tax-exempt status by doing so, is this an appropriate thing to do?

If a church selectively gives its directory to a political party or candidate, it violates its tax-exempt status and it may also run afoul of applicable federal and state election law provisions. If an individual church member gives his or her church directory to a political party or candidate without the approval of the congregation, the individual does not violate the church's tax-exempt status, but he or she should consider other ethical and religious questions. You may find one perspective on these questions helpful.

Candidate Rental of Synagogue Facilities

A mayoral candidate has asked to use the synagogue's fellowship hall for his "people of faith" rally. In the past, we have rented out this space for a small fee for weddings and receptions. May we allow the mayoral candidate to use this space for the same fee?

The rules permit 501(c)(3) organizations to rent their space or sell advertising space to candidates in some cases. The IRS has explained that, "[i]n this context, some of the factors to be considered in determining whether the organization has engaged in political campaign intervention include the following:

If this rental would meet all of these factors, the synagogue could consider it. If the synagogue would like to move forward with the transaction, it should include in its rental contract a disclaimer stating that the rental does not constitute support for the candidate and that the candidate should not imply any such endorsement, either at the event or at any other time. The synagogue also would do well to contact the other candidates in the race and notify them that the space is available to them too on the same terms. Finally, the synagogue could make it clear through announcements and/or signs that the rental should not be misconstrued as an endorsement of the candidate who rents the room.

Nonpartisan Elections

An upcoming school board election is non-partisan. In other words, the candidates are running without reference to their political party. May our synagogue support a candidate in that race?

No, not as long as you intend to keep your status as a tax-exempt 501(c)(3) organization. The rules prohibit 501(c)(3) organizations from taking positions for or against candidates for elective office. Even if you don't take a position favoring or opposing a particular political party, taking a position for or against a particular candidate would violate the rules.

Press Reports and Complaints to IRS

How does the IRS typically learn about electioneering activities by churches and other religious organizations?

The IRS typically relies on press reports and citizen complaints to learn about violations of these rules. Anyone may file a complaint with the IRS. The IRS reviews all such complaints.

Penalties for Campaign Intervention

What are the penalties for intervening in campaign activities?

The penalties for intervening in campaign activities include the imposition of an excise tax on political expenditures and/or revocation of an organization's tax-exempt status.

In addition to these more severe penalties, the IRS has other tools at its disposal. For example, the IRS sometimes issues a written warning. The Service has explained that this kind of warning "is usually issued when an examination identifies issues or activities that are insubstantial, but, if conducted to a greater extent, could affect the organization's exempt status." The IRS has further explained that it has used this tactic to address cases "in which the organization was found to have intervened in a political campaign within the meaning of [Section] 501(c)(3), but the following conditions existed:

It is important to note, however, that in February 2006 the task force within the IRS that deals with these issues "strongly recommend[ed] that, in future election cycles, the IRS increase its use of [tax-exemption] revocation in cases that warrant this sanction." It explained that, given the publicity that IRS enforcement efforts have received and "the IRS 2006 educational efforts, organizations should clearly have an understanding of the rules and the message that the IRS is serious about enforcing the prohibition."

Electioneering Ban and Constitutional Rights

Does the electioneering prohibition violate churches' constitutional free exercise and free speech rights?

It is sometimes suggested that the flat ban on partisan political activity violates the First Amendment rights of churches and other religious institutions. When the IRS revoked a church's tax-exempt status in 1995 for engaging in prohibited political activities, for example, the church raised such arguments. But in 2000 a federal appellate court affirmed a lower court's ruling in favor of the IRS in this case, saying that the revocation did not violate the church's free exercise or free speech rights. See a more detailed description of the Branch Ministries v. Rossotti case.

© Center for Religion and Public Affairs 2006