May 13, 2004 | Read Time: 2 minutes
As the presidential election approaches, the Internal Revenue Service is reminding charities to be careful how they talk to voters if they want to retain their tax-exempt status.
Some churches, schools, and other types of charities often try to help voters understand the issues and the candidates through debates or educational forums. But any group organized as a charity under Section 501(c)(3) of the Internal Revenue Code is prohibited from acting on behalf of a particular candidate.
As a result, charities may not endorse any candidate, make donations to a campaign, engage in fund raising for a candidate, distribute statements that promote or criticize a candidate, or be involved in any other activities that help or hurt someone in the run for office. “Even activities that encourage people to vote for or against a particular candidate on the basis of nonpartisan criteria violate the political-campaign prohibition,” the IRS notes in its announcement.
Two organizations have recently filed complaints with the IRS over election-related activities by charities. Americans United for Separation of Church and State, a public-interest group, has asked the agency to investigate Charles Street African Methodist Episcopal Church in Boston, saying the pastor endorsed Sen. John F. Kerry for president during a service.
The pastor, the Rev. Gregory G. Groover Sr., says he did nothing impermissible. “I welcomed him, but there was no endorsement,” he says of his comments on Senator Kerry. “It is our policy that we do not endorse public candidates.”
Another public-interest group, Open Debates, has accused the Commission on Presidential Debates of violating tax laws by favoring Democratic and Republican Party candidates over third-party contenders in scheduling debate participants.
Janet H. Brown, executive director of the commission, says the group has survived similar challenges in its 17-year history and is careful to follow federal laws. “None of the allegations by Open Debates are true,” she says.
As is its policy, the IRS has declined to disclose what action, if any, it will take in response to the contentions.
The notice may be viewed online at http://www.irs.gov/newsroom/article/0,,id%3D122887,00.html.
