Nonprofits, Voting and Elections
501(c)(3) nonprofits (like MGH) can play an important role in helping their communities vote and participate in the democratic process. There is one basic rule: nonprofits may not support or oppose any candidate for public office. This means nonprofits may not endorse candidates, rate candidates, contribute to candidates, or provide special resources to one candidate that are not offered to everyone in the race. They may, however, take positions on public policy issues as long as it does not appear to be “partisan”- an effort to support or oppose a candidate. The IRS considers activity on ballot measures a lobbying activity – not electioneering, so nonprofits may advocate on these matters. The IRS makes this distinction because advocacy on ballot measures is an attempt to influence a proposed law or a policy – not the election or defeat of a candidate.
Voter Rights & Education
There are many nonpartisan activities that a nonprofit can legally do to help their communities participate and vote. Nonprofits may educate voters or candidates on the issues, provide opportunities for voters to hear the candidates’ positions, encourage citizens to register to vote, help new voters navigate the voting process and get people to go to the polls on Election Day.
This guide discusses many possible activities and ways that nonprofits can make sure they remain nonpartisan.
Yes
No
Register people to vote
Endorse candidates for office
Use your communications to actively encourage the people you serve to vote
Contribute money to candidates
Sponsor nonpartisan candidate forums or debates subject to limits on lobbying.
Let candidates use office space, equipment, mailing lists or other 501(c)(3) resources(unless equally available to all candidates at fair market value).
Help new voters understand elections and voting process
Rate candidates
Encourage and help people get to the polls on Election Day
Publicize which candidates share the organization's view on contested issues
Issue Advocacy
Most nonprofits care deeply about particular issues of public policy — issues such as education, housing, the environment or budget priorities that go to the heart of the nonprofit’s mission. The IRS explicitly states that nonprofits may continue lobbying activities during an election: “Under federal tax law, section 501(c)(3) organizations may take positions on public policy issues, including issues that divide candidates in an election for public office.” (Internal Revenue Service, Fact Sheet 2006— 17, February 2006.)
However, it is possible that communications on issues during an election could be considered a partisan if they appear to be an effort to support or oppose a candidate. There is a greater risk of appearing partisan when you mention the names of candidates or upcoming elections in a communication. As always in evaluating 501(c)(3) activities, there are no bright lines. It depends on the “facts and circumstances”. Here are some basic guidelines.
General guidelines for issue advocacy unrelated to an election
1. You may continue to lobby or engage in other advocacy activities in the months leading up to an election, but be careful before increasing these advocacy activities during the election season. If you step up your advocacy on a particular issue at the same time that this issue is a key point of disagreement between two or more candidates, it may seem as if you are trying to favor the candidate who most closely shares your organization’s views.
2. A history of work on an issue in the past is a key factor in whether advocacy is an effort to influence the outcome of the upcoming election. Your activity is far more likely to be seen as nonpartisan if you have engaged in the same or similar activities in non-election years.
3. Responding to an external event is often safer. Frequently, organizations get involved in an issue in response to external events beyond their control — a shelter closing, an imminent vote on a bill in the legislature, etc. This type of external impetus sometimes occurs just before an election. Organizations want to get involved, but may be nervous because the candidates may be talking about the same issue. The external event helps to demonstrate that your organization was not motivated by a desire to influence the election.
Ballot Measures
Many states have ballot questions — initiatives, referenda, or constitutional amendments. How are these different from candidate elections?
In general, there are three things to know about working on ballot measures:
- The most important thing a 501(c)(3) nonprofit should know is that the IRS considers activity on ballot measures a lobbying activity – not electioneering. A 501(c)(3) may work for or against ballot questions up to normal lobbying limits*. The IRS makes this distinction because advocacy on ballot measures is an attempt to influence a proposed law or a policy – not the election or defeat of a candidate.
- 501(c)(3)s may also engage in unlimited activities that neither support nor oppose the ballot measure, such as voter registration, voter education, and get-out-the-vote activities.
- Your state may have reporting requirements for ballot measure expenditures.
*What are the 501(c)(3) lobbying limits for ballot measures?
Your lobbying limits depend on which of two alternative tests your nonprofit chooses to measure its lobbying:
- If your nonprofit has chosen to measure its lobbying under the so-called 501(h) expenditure test, it has clearer guidance and can do more lobbying. Under this expenditure test, you can spend a certain percentage of your annual budget (as much as 20% for small organizations, less for larger groups) on efforts by you or your members to directly influence the outcome of a ballot question or legislative vote.
- If your 501(c)(3) has not chosen to use the above expenditure test, it may spend an “insubstantial” amount of money and time on lobbying. This includes any efforts to support or oppose a ballot question and other efforts the organization makes to influence more traditional legislative proposals at the local, state, or federal levels. “Insubstantial” lobby expenditures has been interpreted to mean a relatively small percentage of time and money, for example less than 5%.
An organization spending funds to influence the outcome of a ballot question may have to register and file disclosure reports with a state or local campaign finance office. You can find your state’s campaign finance office by contacting your Secretary of State.
Download the ballot measures fact sheet
-From http://www.nonprofitvote.org/nve-general-rules.html, http://www.nonprofitvote.org/nve-issue-advocacy.html, http://www.nonprofitvote.org/nve-ballot-measures.html, and ballot measures advocacy fact sheet, retrieved 10/4/10.
10/10