U.S. Supreme Court's Decision Does Not Impact 501c3 Nonprofit Organizations

The January 21, 2010 U.S. Supreme Court’s landmark decision in Citizens United v. Federal Election Commission concerning the application of certain election laws to corporations does NOT change how other laws limit the election-related activities of charitable nonprofit organizations with tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.

On page 50 of the Supreme Court’s majority opinion it reads “Government may not suppress political speech on the basis of the speaker’s corporate identity. No sufficient governmental interest justifies limits on the political speech of nonprofit or for-profit corporations.” This language does not allow 501(c)(3) charitable nonprofits to ignore other federal laws.

Federal law declares that charitable nonprofits and foundations may not "participate in, or intervene in (including publishing or distributing statements), any political campaign on behalf of (or in opposition to) any candidate for political office at the federal, state, and local levels."

According to the IRS, "All 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes."

For more information, please review the National Council of Nonprofits analysis.