Protect your exempt status in Election 2020
Abstract: Nonprofits that are tax-exempt as 501(c)(3) organizations, including charities and churches, are barred from participating or intervening in any political campaign for or against a candidate for public office. Organizations that violate the prohibition risk losing their tax-exempt status and could find themselves on the hook for an excise tax. This article discusses the rules governing elections and some politics-related activities and expenses that may be permissible depending on the facts and circumstances. A sidebar explains how “substantial” lobbying is not permissible either.