Election years frequently prompt a common question among church leaders and pastors: What types of political activities and speech are allowed under section 501(c)(3) of the tax code?
While political activities and speech by churches and pastors are protected by the US Constitution’s First Amendment, the Internal Revenue Code contains specific language that either prohibits or limits certain activities conducted by tax-exempt entities. Violations can lead to excise taxes, the revocation of federal tax exemption, or both. While few public examples exist of the enforcement of these rules over the years by the Internal Revenue Service (IRS), churches and church leaders still should understand the prohibitions and limitations, including any potential tax consequences any violations may trigger.
This chart provides a variety of examples of political activities churches might wish to do and briefly details the related IRS guidance, including the potential effects of those activities on a church’s tax-exempt status. The goal is to provide a quick reference for church leaders that helps them make informed decisions.
To go deeper on these issues, don’t miss “The Tax Implications of Churches and Political Involvement,” by attorney, CPA, and senior editor Richard R. Hammar, and “Churches, Politics, and Constitutional Protections,” by attorney Erik Stanley on ChurchLawAndTax.com’s Recommended Reading page.
|
ACTIVITY |
IMPACT ON TAX- EXEMPT STATUS |
BASIS |
|
A church makes contributions to a candidate’s campaign fund |
Prohibited |
IRS Publication 1828 |
|
A church makes public statements of position (verbal and written) in favor of or in opposition to candidates for office through official church publications, at official church functions, or both |
Prohibited |
IRS Publication 1828 |
|
A church’s pastor delivers a sermon series addressing what the Bible says about abortion, criminal justice reform, sexual orientation and gender identity, and other topics with social and spiritual implications |
Permitted |
First Amendment of the US Constitution |
|
A church provides a nonpartisan forum for all candidates to address the church |
Permitted |
IRS Publication 1828 |
|
A church invites all candidates for a political office to address the congregation and informs the congregation before each candidate’s speech that the views expressed are those of the candidate and not the church, and that the church does not endorse any candidate |
Permitted |
Revenue Ruling 74-574; IRS Publication 1828 |
|
A church invites only one candidate in a political campaign to address the congregation |
Prohibited |
Revenue Ruling 2007-41; IRS Publication 1828 |
|
A church provides an opportunity for a candidate to speak in a noncandidate capacity (for example, as a member of the church, public figure, or expert in a nonpolitical field) without providing equal access to all political candidates for the same office. The church ensures that the candidate speaks in a noncandidate capacity; no reference is made to the person’s candidacy; the church mentions the capacity in which the candidate is appearing (without mentioning the person’s political candidacy); and no campaign activity occurs. |
Permitted |
IRS Publication 1828 |
|
A church distributes a compilation of voting records of all members of US Congress on major legislative issues involving a wide range of subjects; the publication contains no editorial opinion, and its text, design elements, and structure do not imply approval or disapproval of any members or their voting records |
Permitted |
Revenue Ruling 78-248; IRS Publication 1828 |
|
A church distributes a voter guide containing questions answered by all candidates. The questions cover a wide range of topics, but the wording of the questions demonstrates bias on certain issues. |
Prohibited |
Revenue Ruling 78-248; IRS Publication 1828 |
|
A church endorses a candidate (by any variety of ways, including verbal or written statements, references to the candidate’s political party, references to the candidate’s distinctive platform or biography, and/or showing the candidate’s picture) |
Prohibited |
Int. Rev. News Release IR-96-23; IRS Publication 1828 |
|
Church employees carry on campaign activities for a candidate within the context of their church employment |
Prohibited |
FSA 1993-0921-1; IRS Publication 1828 |
|
A church fails to “disavow” the campaign activities of persons under “apparent authorization” from the church by repudiating those acts “in a timely manner equal to the original actions” and taking steps “to ensure that such unauthorized actions do not recur” |
Prohibited |
FSA 1993-0921-1 |
|
A church engages in fundraising on behalf of a candidate |
Prohibited |
Int. Rev. News Release IR-96-23; IRS Publication 1828 |
|
A church conducts a neutral voter registration drive |
Permitted |
11 C.F.R. § 111.4(c)(4); IRS Publication 1828 |
|
A church buys and places newspaper ads urging voters to vote for or against a candidate |
Prohibited |
Branch Ministries, Inc. v. Commissioner, 99-1 USTC ¶50,410 (D.D.C. 1999), aff’d, Branch Ministries v. Rossotti, 2000 USTC ¶50,459 (D.C. Cir. 2000) |
|
A church website contains information either supporting or opposing candidates for public office |
Prohibited |
IRS Publication 1828 |
|
A church website contains links to candidate-related materials, and does not include any text, design elements, or structure indicating support of or opposition to any of the candidates |
Permitted |
Revenue Ruling 2007-41; IRS Publication 1828 |
|
A church website links to third-party websites containing materials supporting or opposing candidates |
Prohibited |
IRS Publication 1828 |
|
A minister who is known well in the community attends a press conference at a political candidate’s campaign headquarters and states that the candidate should be reelected. The minister does not say he is speaking on behalf of his church. His endorsement is reported on the front page of the local newspaper, and he is identified in the article as the minister of his church. |
Permitted |
Revenue Ruling 2007-41; IRS Publication 1828 |
|
A church maintains a website that includes biographies of its ministers, times of services, details of community outreach programs, and activities of members of its congregation. A member of the congregation is running for a seat on the town council. Shortly before the election, the church posts the following message on its website: “Lend your support to your fellow parishioner in Tuesday’s election for town council.” |
Prohibited |
Revenue Ruling 2007-41; IRS Publication 1828 |
|
A church urges its members to contact members of the state legislature and urge them to reject a proposed bill legalizing marijuana |
Prohibited |
IRS Publication 1828 |
|
A church provides its members with educational materials about the legalization of marijuana and hosts an educational meeting on the topic |
Permitted |
IRS Publication 1828 |
|
A church gives a pro-life advocacy group permission to place pamphlets on vehicles in the church’s parking lot during Sunday worship services. The pamphlets urge congregants to support a “pro-life” slate in the upcoming election. |
Unclear based on IRS regulations and current law—but likely prohibited | |
|
A church owns space suitable for events and makes it available for rent to the public on a first come, first served basis. A candidate pays the standard fee to host a campaign dinner. |
Permitted |
IRS Publication 1828 |
|
A church sets up a booth at the state fair where citizens can register to vote. The booth only contains the church’s name, the date of the next statewide election, and notice of the opportunity to register. No reference to any candidate or political party is made in any materials or in any statements given by volunteers. |
Permitted |
IRS Publication 1828 |
|
A church maintains a list containing contact information for its members and has never rented it to a third party. The church allows one candidate to rent the list to send campaign information, but declines similar requests from other candidates. |
Prohibited |
IRS Publication 1828 |
|
A church sets up a telephone bank to conduct a “get-out-the-vote” effort and contacts registered voters in its district. Church volunteers are instructed to ask the registered voters about their positions on certain moral issues, and if the voter’s positions align with a specific candidate running for office in the district, to then remind them about the upcoming election, the importance of voting, and the availability of church-sponsored transportation to the polls. |
Prohibited |
IRS Publication 1828 |
For a more detailed discussion about political activities and the church, visit ChurchLawAndTax.com’s Recommended Reading page, “Churches and Political Activities,” as well as chapter 12 of Richard R. Hammar’s annual Church & Clergy Tax Guide.
