by Natalie Jones, Director of Advocacy and Research, Tennessee Nonprofit Network
Background on the Johnson Amendment
The Johnson Amendment is a provision in Section 501(c)(3) of the Internal Revenue Code that prohibits tax-exempt organizations—including charities and houses of worship—from endorsing or opposing candidates for public office. Enacted in 1954, the law was intended to ensure that nonprofit organizations, which benefit from tax-exempt status, do not participate in political campaign activity. Congress has revisited this provision over time, most recently in 1987, to clarify and reinforce the ban on both supporting and opposing candidates.
Recent Legal Action in Texas
A recent case in the United States District Court for the Eastern District of Texas, National Religious Broadcasters et al. v. Billy Long, Commissioner of the Internal Revenue Service et al., involves a group of religious organizations challenging the enforcement of the Johnson Amendment. The plaintiffs claim that the amendment violates their constitutional rights, including the First Amendment protections for free speech and free exercise of religion, and the Fifth Amendment’s guarantees of due process and equal protection.
While no formal ruling has been issued by the court, the parties have submitted a proposed consent decree. If approved, this decree would limit the IRS’s ability to enforce the Johnson Amendment against the plaintiffs under specific circumstances. Specifically, the IRS agreed that communications from a house of worship to its congregation—delivered through customary channels during religious services—regarding electoral politics through a faith-based lens would not be considered a violation of the Johnson Amendment.
Key Parameters of the IRS’s Position in the Proposed Decree
According to the motion, the IRS’s interpretation applies to:
- Organizations: Houses of worship
- Posture: Acting in good faith
- Audience: Congregations
- Method: Customary, internal communication channels
- Topic: Matters of faith, including electoral politics viewed through a religious perspective
- Context: In connection with religious services
The IRS’s position marks a shift from its longstanding enforcement practice, although the agency has not issued any formal administrative guidance to this effect. The consent decree, if approved, would apply only to the named plaintiffs in this case but could influence future enforcement and interpretations for similarly situated organizations.
What This Means for Nonprofits in Tennessee
- The Johnson Amendment remains in effect. No court has ruled the provision unconstitutional, and Congress has not amended or repealed the statute.
- The proposed consent decree is not binding on other courts or organizations, but it may have persuasive value.
- The consent decree applies only to religious organizations engaging in narrowly defined internal speech. It does not provide broad permission for political activity.
- The IRS has not changed the law, nor has it issued broader guidance to all tax-exempt organizations.
Nonprofits in Tennessee and across the country should continue to follow IRS guidelines and monitor any changes in federal court rulings or agency enforcement policies.
Organizations should also consult legal counsel if they have questions about how this development may apply to their specific activities.