Nonprofits, elections and the Supreme Court’s decision

From the National Council of Nonprofits

The U.S. Supreme Court on Jan. 21 issued a decision in Citizens United v. Federal Election Commission that has confused some writers who are not as familiar with the important legal distinctions between different types of “nonprofits” that exist or with the differences between federal election laws that the Court changed and tax laws that the Court did not change.

Therefore, to make sure nonprofits in Hawaii are aware of their full legal rights – and limitations – when it comes to participating in elections, the Hawaii Alliance of Nonprofit Organizations is attaching for your review a brief analysis that the National Council of Nonprofits prepared to help 501(c)(3) nonprofits avoid taking actions that could jeopardize their tax-exempt status.

HANO and the National Council of Nonprofits – to which HANO members belong through your membership with us – share the concern that nonprofit leaders need to know not only what 501(c)(3) nonprofits cannot do, but also what we can do. That is why the brief analysis answers these questions:

• How Does the Recent Supreme Court Case Impact Nonprofits?
• What Can 501(c)(3) Charitable Nonprofits Do in Connection with Political Campaigns?
• What Else Can Charitable Nonprofits Do?
• For those who want to know more in general, the brief analysis provides several good references.
• For those who want to know even more about the effect of the Supreme Court’s decision on 501(c)(3) nonprofits, the Alliance for Justice also has published a solid overview.