Charities and Political Activity-Steering Clear of Risks in an Election Year

In this article, Joan Renner discusses how charities can engage in political activity while maintaining tax-exempt status. She first explains that board members and CEOs of nonprofits must speak as individuals and not as the nonprofit itself. She explains that board members and CEOs are permitted to support individual candidates, but they must do so individually. She says that if a nonprofit holds an event that includes political candidates they must refrain from fundraising at the event. She then discusses that when advocating for issues that are important to your nonprofit not to mention the upcoming election. She explains that nonprofits are permitted to advocate their positions on certain legislative issues if it’s not a substantial part of their activities. However, if that issue becomes prominent in the election, tying their positions on those issues to the election becomes prohibited political activity. She finishes the article by discussing that making campaign statements on the nonprofit’s website is prohibited. To learn more about to protect nonprofit tax-exempt status while engaging in political activity, click here: https://www.nonprofitaccountingbasics.org/federal-tax-issues/charities-political-activity—steering-clear-risks-election-year

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