by Dr. Kevin Dean, President & CEO, Tennessee Nonprofit Network
The call came in during a busy week. A local political candidate, full of enthusiasm, wanted to partner with our organization. Their campaign manager laid out an exciting proposal: a book drive co-hosted by the candidate, a speaking opportunity at one of our flagship community events, and a promise to mention our nonprofit’s name in numerous political speeches to highlight their commitment to community engagement. The offer seemed, on the surface, to be a fantastic opportunity for visibility and a way to secure donations for a worthy cause.
However, a red flag immediately went up. I knew that, as a 501(c)(3) nonprofit, we had to be incredibly careful. The idea of our name being used in political speeches, or a candidate using our event as a campaign platform, was a direct violation of our legal obligations. With a deep breath and a polite tone, I explained our nonpartisanship policy and our inability to participate. The campaign manager’s tone quickly soured, and the conversation ended with their anger and frustration palpable. It was a difficult decision, but it was the only one that would protect our organization’s integrity and legal status.
With the looming and very consequential midterm elections happening next year, many nonprofits will find themselves in a similar situation. These moments are a critical test of an organization’s understanding of the rules governing its tax-exempt status. It is a time when the pressure to align with a cause or a personality can be immense, but the consequences of doing so can be catastrophic.
The Cornerstone of Nonprofit Status: The Mandate of Nonpartisanship
For a 501(c)(3) organization, nonpartisanship is not merely a suggestion or a mission-based preference; it is the absolute foundation of its tax-exempt status. These organizations are explicitly and legally prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. This rule is absolute and applies to all forms of political activity, from explicit endorsements to more subtle acts that could imply support.
The reason for this is twofold. First, the U.S. tax code grants tax exemption to these organizations because they serve a public good, not a partisan one. Donor contributions are tax-deductible because they are seen as supporting charitable, educational, or scientific purposes, not political campaigns. Second, this rule protects nonprofits from becoming entangled in the often-divisive world of partisan politics, allowing them to maintain public trust and focus on their core mission without being seen as a political tool. The appearance of partisanship is just as damaging as the act itself, as it can alienate donors, volunteers, and beneficiaries who hold different political views, thereby compromising the organization’s ability to serve the entire community.
The Johnson Amendment: The Legal Framework
This mandate is codified in the Johnson Amendment, a 1954 provision of the U.S. tax code that prohibits 501(c)(3)s from engaging in any political campaign activity. While there have been debates and attempts to weaken or repeal this amendment, it remains the law of the land and is actively enforced by the IRS.
The amendment is clear: a nonprofit cannot endorse or oppose political candidates, contribute to their campaigns, or allow its resources to be used for a candidate’s benefit. This includes things like:
- Using a nonprofit’s mailing list to send out campaign information.
- Allowing a candidate to use the organization’s office space or event venue for a campaign rally without offering the same opportunity to all candidates on an equal basis.
- Having a candidate’s campaign logo or endorsement on the nonprofit’s website or social media.
- Distributing voter guides that show a clear bias towards one candidate over another.
The Johnson Amendment protects the integrity of the nonprofit sector and ensures that charitable dollars are used for charitable purposes. It also helps preserve the reputation of nonprofits as trusted, nonpartisan entities dedicated to serving the public good.
What to Do When a Candidate Contacts You
When a political candidate or their campaign team approaches your nonprofit, it’s essential to have a pre-planned strategy. The following steps will help you navigate the situation gracefully while protecting your organization:
- Acknowledge and Thank: Start by thanking the candidate for their interest in your work. This keeps the conversation cordial and professional.
- Clearly State Your Nonpartisan Policy: Immediately and politely explain that as a 501(c)(3) organization, you are legally required to remain nonpartisan. Use this as a foundational, non-negotiable principle.
- Decline Politely but Firmly: If the request involves any form of endorsement, promotion, or partnership that could be construed as partisan, you must decline. You can do so by saying something like, “While we appreciate your interest, our legal status as a 501(c)(3) prohibits us from participating in any political campaign activities. This is a strict rule that we must follow to maintain our nonpartisan status and our ability to serve the entire community.”
- Offer Permissible Alternatives: You can offer to engage with the candidate on issues of mutual interest without crossing the line into partisanship. For example, you can offer to provide them with information on the issues your nonprofit works on or invite them to a candidate forum where all candidates for that office are invited to speak on issue-based topics. This demonstrates your commitment to civic engagement and your mission without endorsing a specific person.
The Role of the CEO: Personal Convictions vs. Professional Responsibilities
The CEO of a nonprofit occupies a unique and visible position. While they are private citizens with the right to their own political views, their actions can easily be attributed to the organization they lead. Therefore, they must be exceptionally careful to separate their personal and professional lives.
If a CEO is asked for a personal endorsement, they must make it crystal clear that their support is given in a personal capacity only. This means:
- No use of the organization’s name, logo, or title. The CEO should not be identified as “CEO of [Nonprofit Name]” in any endorsement materials.
- No use of organizational resources. The CEO should not use their work email, office phone, or any other organizational resource to support a candidate.
- Clear public statements. If the CEO is a public figure, they should make a public statement clarifying that their political views do not represent the organization and that the organization remains strictly nonpartisan.
In my experience, the simplest and safest path for a CEO is to avoid public endorsements altogether. The potential for misinterpretation is too high, and even the most well-intentioned action can create a public relations headache and threaten the organization’s nonpartisan standing. The anger and frustration I experienced from the political campaigner were a small price to pay for protecting our organization’s integrity and ensuring it could continue its vital work without being seen as a political pawn. This is a lesson every nonprofit leader must internalize, especially as election cycles become more frequent and more intense.
That’s an excellent point. While the prohibitions on partisan activity are well-known, it’s just as important for a nonprofit to understand what it can do to engage with the political process in a nonpartisan and mission-driven way. Here is a section on what a 501(c)(3) organization is permitted to do.
Addendum: What a 501(c)(3) CAN Do: Engaging in Nonpartisan Activities
While a 501(c)(3) must never support or oppose a political candidate, there are many ways it can and should participate in the civic life of its community. These activities are critical for a healthy democracy and directly advance the mission of most nonprofits.
- Lobbying and Issue Advocacy: A nonprofit can, and often should, engage in lobbying and issue advocacy. The Johnson Amendment does not prohibit this. Instead, it places a limit on the amount of lobbying a public charity can do. For instance, a nonprofit focused on environmental protection can lobby legislators to pass a bill on clean air standards. It can also advocate publicly for the issue, even if that issue is a key topic in an election. The key distinction is that the advocacy must focus on the issue, not on a candidate.
- Voter Education and Registration: A nonprofit can conduct voter registration drives, encourage people to vote, and provide nonpartisan information about voting. This includes sharing details about where and when to vote, as well as providing information on how to register. These activities are seen as promoting civic engagement and are strictly nonpartisan.
- Candidate Forums and Voter Guides: A nonprofit can host a candidate forum or produce a voter guide. The crucial requirement is that these activities must be completely nonpartisan. This means:
- All viable candidates for a given office must be invited to a forum.
- The questions asked must be developed by an impartial panel.
- The event must be moderated by a neutral party.
- Voter guides must present all candidates’ responses fairly, without any commentary or rating that could be seen as favoring one candidate over another. The guide should simply inform voters, allowing them to make their own decisions.
- Educating Candidates on Your Issues: Your organization can and should educate all candidates about your mission and the issues you work on. This is a vital form of advocacy that helps policymakers understand the needs of your community. You can meet with all candidates, provide them with briefings, or invite them to a tour of your facilities. Just remember to extend the same opportunity to all candidates to avoid any perception of favoritism.
- Publication of Legislative Voting Records: A nonprofit can publish the voting records of elected officials. This is considered an educational activity. However, it’s essential that the record be presented in a neutral, factual manner and not be used to endorse or oppose a candidate. For example, you can publish a report showing how every senator voted on a specific environmental bill, but you cannot add a headline that reads, “Senator Smith Voted Against the Environment” if Senator Smith is running for re-election.