Non-Profit Organizations and Community Organizations: Beware of Political Campaign Invitations

The Internal Revenue Code and United States Department of Treasury regulations impose "restrictions" on the participation of 501 (c) (3) organizations, religious congregations, educational institutions and community organizations in "political activities". Corporate officers should exercise care and caution in distributing documents produced and printed by political parties, candidates and causes.

For example, a local state senator contacts a neighborhood association leader providing job information for hiring by a "specific" political campaign. The job announcement advertises paid phone bank positions.

To protect its 501 (c) (3) status, a community organization would arguably act in its tax-exempt operational requirements by posting a "NO ENDORSEMENT STATEMENT" on any such materials.

Here is an example of a template disclaimer for a specific political campaign's phone bank job announcement:


Good Neighbors Association (GNA) operates under a 501 ( c ) (3) organization umbrella and does not endorse political campaigns, causes or candidates.  GNA is distributing this employment announcement solely for the purpose of informing residents about employment opportunities.

  
If a 501(c) (3) organization board, officers, leaders or staff decide to inform organization members about volunteer OR paid opportunities on political campaigns, it is advisable that  board and staff members explain clearly that he or she is providing information in an individual role rather than official capacity.

Organizations would arguably protect such communications by carefully controlling the telephone devices, e-mail addresses, websites or other medium used to transmit messages.  Such controls are best used with integrity and honesty. Proceeding on the sides of "caution" and "restriction" is advisable. The appearance of endorsement can create legal issues for 501(c) (3) organizations and jeopardize tax-exempt status and continued eligibility for federal, state, local  and foundation grants.

The Internal Revenue Code and United States Department of Treasury regulations "allow" community organizations to "educate" members about election day information and voter registration.  Prior to statements by political candidates or about political issues at 501(c) (3) organization meetings,press conferences or forums a "NON-ENDORSEMENT DISCLAIMER" announcement is advisable.