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A Guide for Church Trustees
VII. Political Activity of Churches
As indicated in Section I, Congregations are considered exempt from Federal Income Tax pursuant to Section 501(c)(3) of the Internal Revenue Code. In order to maintain that exemption, an organization must be operated "exclusively for exempt purposes." Pursuant to the Internal Revenue Code, an organization does not operate for exempt purposes if it conducts any "substantial" lobbying or engages in any political campaign activity.
Lobbying
The Internal Revenue Code permits "Lobbying" which does not rise to "a substantial" portion of the organization's operation. Our experience is that no Congregation would ever find itself in a situation of expending "a substantial" portion of its operation on lobbying. So, therefore, we view lobbying to be a permissive activity.
"Lobbying" can best be described as an "issue oriented" activity. Such activities which fall into this description would include comments on legislation, advocacy for legislation, referenda, ballot incentives, constitutional amendments, bond measures, etc. Such activities are permitted but care should be taken that any permissive act of lobbying or advocacy is not directed at particular individuals during a political campaign for election.
Political Activity
The prohibition against involvement in political activity is addressed to cases of a candidate seeking public office. A Candidate can be described as a person who offers him or herself, or who is proposed by others, to run for public office. Even without a formal announcement, however, one can be considered a candidate if nominated by others. The positions for which a candidates seeks election have been determined to extend to elective public office including school board positions and elective political party positions.
The prohibition does not extend to comments regarding individuals seeking an appointed position, such as a judge; such activity is considered lobbying and not political campaign activity.
The activities which are prohibited include, but may
not be limited to, making of statements, either written or oral supporting
or opposing candidates for elective office, or supporting or opposing
slates of candidates, political parties, or political action committees.
Potentially, this could include statements made in sermons, Congregation
bulletins, Church newspapers and other publications. Congregations are
also cautioned to avoid indirectly supporting or opposing candidates.
Labeling candidates and thereby indicating approval or disapproval of
the candidates must be avoided.
Additionally, Congregations may not provide financial or in-kind support
which would include the use of Congregation volunteers, paid staff, facilities,
equipment or mailing lists. Congregations may participate in voter education
materials, however, care should be taken that any materials or statements
made can not be considered partisan campaign materials including campaign
literature or biased campaign materials. Extreme care should be taken
in connection with the use of voter educational materials provided by
outside organizations.
Clearly certain activities regarding voter and candidate education are not prohibited. Congregations can educate the candidates regarding important issues and the Congregation's position on those issues. Congregations can also educate the voters regarding the candidate's position on the issues by sponsoring candidate forums and distributing appropriate voter education materials. It is essential that these activities remain unbiased. They must not indicate or imply that the Congregation agrees or disagrees with the candidates' positions.
Also permitted are neutral, non-partisan forums for presentation of un-biased candidate debates. Such activity is very closely scrutinized and such a program should not be entered into without discussion with your Congregation's Attorney or legal advisor. Similarly, use of Congregation property for political speeches or rallies is prohibited.