Can a 501(c)(3) organization provide information in its newsletter or on its website about openings on local elected boards and information about running in local elections without fear of losing its 501(c)(3) status?
Ordinarily, a charitable organization can provide information to the public about political openings and political campaigns without losing its exempt status so long as the information is nonpartisan. The Tax Court held in 1989 that the American Campaign Academy, a school for Republican candidates that taught courses on how to beat Democrats, provided substantial private benefit to the Republican Party and could not be exempt as a charity.
Revenue Service has taken the position that a charity can
be deemed to participate in an election campaign, which can
cause loss of exemption, merely by the kinds of questions
it asks candidates, or by the selective dissemination of their
Ready Reference Page: “Charities May Not Participate
in Elections.”) So if you undertake this kind of
activity, be absolutely sure that the information, or the
context in which it is provided, cannot be considered partisan.
With pressure mounting on nonprofits to consider affiliations with other organizations, this workshop is designed to help you better navigate the world of mergers, acquisitions and affiliations. Unlike the corporate world, there are no financial "matchmakers" to help nonprofits identify successful partners for a merger. Learn more in our pre-recorded webinar.
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