There are things nonprofits can’t do
in an election year and things they must

As the presidential election and local races heat up this year, it’s important for nonprofits to be reminded of what they can and cannot do in the arena of electoral politics. The Internal Revenue Service has posted a guide for nonprofits on its web site that covers the prohibition from becoming directly or indirectly involved in campaigns for political candidates.

501(c)(3) tax-exempt organizations cannot endorse or oppose any political candidate. To do so would jeopardize their tax-exempt status and could also result in imposition of an excise tax. At the same time, this election is likely to have a significant impact on nonprofits and nonprofit professionals are citizens with the right to select the candidates that best reflect their values and concerns.

As Bob Ottenhoff, president of GuideStar, wrote recently in that organization’s newsletter, “It is important that we elect a president with a clear understanding of – and appreciation for – the nonprofit sector and the role it plays in providing vital services to our society, often services that government cannot or does not provide.

“But it is equally important that we elect a president who has a personal understanding of philanthropy. Politicians are also citizens—generally wealthy citizens—and it is not unfair to assume that their personal attitudes toward charitable giving will have some effect on their professional decisions.”

While nonprofit leaders may be prohibited from waving signs for a favorite candidate, they must remain engaged and informed. “Regardless of which party is in power, we need an administration that will find a balance between effective oversight and over-regulation,” Ottenhoff wrote, “one that will seek out ways to continue funding vital charitable programs, and one that will generally help create a society that encourages members of the next generation to embrace a life of volunteerism and socially conscious generosity.”