Section 501(c)(3) of the Internal Revenue Code says an exempt charity may not "participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office." The IRS calls this an absolute prohibition. There is no percentage test and no small-amount exception, unlike the limit on lobbying. This guide explains what IRS guidance says the rule covers and what it leaves open to you.
What the prohibition covers
The Treasury regulations define a candidate for public office as someone who offers himself or herself, or is proposed by others, as a contestant for an elective public office, whether national, state or local. The rule therefore reaches school board and city council races as much as federal ones.
IRS publications give two examples that "clearly violate" the prohibition:
- contributions to political campaign funds; and
- public statements of position, spoken or written, made by or on behalf of the organization in favor of or against any candidate.
Everything else is judged on all the facts and circumstances. The IRS's main guidance is Revenue Ruling 2007-41, which walks through 21 situations, and the plain-language summaries in Publication 1828 (for churches) and Publication 4221-PC (for public charities). If you have not yet confirmed your organization's basic status, start with 501(c)(3) requirements.
What you can do
Nonpartisan voter registration and get-out-the-vote drives
You may encourage people to take part in elections. In Rev. Rul. 2007-41, a community group runs a voter registration booth at a state fair with signs showing only its name, the election date and the chance to register. That is allowed. In contrast, an environmental group that phones voters shortly before an election and offers rides to the polls only to people who agree with one candidate's position has intervened in the campaign.
Voter guides and candidate questionnaires
Voter education, including guides that compile candidates' positions, is allowed if it is nonpartisan in both content and structure. A guide or questionnaire that shows a bias or preference for a particular candidate's views is not.
Candidate forums and debates
Hosting several candidates for the same office is a recognized way to educate voters. Rev. Rul. 2007-41 lists factors the IRS considers:
- whether questions are prepared and presented by an independent, nonpartisan panel;
- whether the topics cover a broad range of issues of interest to the public;
- whether each candidate has an equal opportunity to present views on each issue;
- whether candidates are asked to agree or disagree with the organization's own positions; and
- whether the moderator comments on the questions or implies approval or disapproval of a candidate.
Inviting candidates to speak
When you invite a candidate to speak as a candidate, the IRS asks whether you gave an equal opportunity to the other candidates for the same office, whether you signaled support or opposition (including in introductions and publicity), and whether any political fundraising took place. Equal opportunity includes the setting: inviting one candidate to a well-attended annual banquet and the opponent to a sparsely attended general meeting is likely a violation. A candidate may also appear in a non-candidate role, such as a current officeholder, an expert or a public figure. There the IRS looks at whether the person was chosen for reasons other than the candidacy, whether anyone mentions the candidacy or the election, whether campaign activity occurs, and whether the event keeps a nonpartisan atmosphere.
Speaking on issues
You may take positions on public policy issues, including ones that divide the candidates. The risk comes when issue advocacy functions as campaign intervention. The IRS considers factors such as whether the message identifies a candidate (by name, picture, party or distinctive platform features), expresses approval or disapproval of a candidate's positions, is delivered close to the election, refers to voting, and is part of an ongoing series on the issue made regardless of the election calendar. Advocating for or against a ballot measure is lobbying, not campaign intervention, and is measured under the separate rules in our lobbying limits guide.
Leaders speaking for themselves
The prohibition does not restrict an executive director's or pastor's personal political expression. Leaders cannot make partisan comments in official publications or at official functions, and the IRS encourages them to make clear that personal comments are not the organization's views. In Rev. Rul. 2007-41, a hospital CEO listed in a candidate's newspaper ad, paid for by the campaign and stating that titles are for identification only, did not cause the hospital to intervene. Churches and 501(c)(3) covers how this applies to clergy.
Websites and business activities
Your website counts as your own publication. You are also responsible for the links you choose to post; a nonpartisan voter guide that links neutrally to every candidate's site is fine, while the IRS looks at context, whether all candidates are represented and the exempt purpose of other links. If you rent a mailing list, lease space or sell advertising, the IRS looks at whether the same terms are available to all candidates on an equal basis, whether they are available to the general public as well, and whether you charge your customary rates.
What happens if you cross the line
Campaign intervention puts the organization's exemption, and its ability to receive tax-deductible contributions, at risk. In addition, Section 4955 imposes excise taxes on political expenditures, meaning amounts paid or incurred in campaign intervention. The IRS states that these taxes can be imposed in addition to or instead of revocation.
| Tax | Who pays | Rate | Cap |
|---|---|---|---|
| Initial tax | The organization | 10% of the expenditure | None |
| Initial manager tax | Managers who agreed knowing it was a political expenditure, unless not willful and due to reasonable cause | 2.5% | $5,000 per expenditure |
| Additional tax if not corrected | The organization | 100% | None |
| Additional manager tax | Managers who refused to agree to correction | 50% | $10,000 per expenditure |
Correction means recovering the expenditure to the extent possible and establishing safeguards to prevent future political expenditures. A 501(c)(3) that loses its exemption because of political activity cannot later qualify as a 501(c)(4) social welfare organization, according to Publication 557. Organizations that want to do partisan work usually look at other structures, which are described in other 501(c) organizations.
A neighborhood arts nonprofit spends $4,000 printing flyers that endorse a city council candidate.
- Initial tax on the organization: 10% × $4,000 = $400.
- Initial tax on a director who knowingly approved it: 2.5% × $4,000 = $100.
- If the expenditure is not corrected in time: an additional 100% × $4,000 = $4,000 on the organization, and 50% × $4,000 = $2,000 on any manager who refused to agree to the correction.
The organization must also disclose any Section 4955 tax on Schedule C, Part I-B, of its Form 990 or 990-EZ. Federal, state and local election laws apply separately and can differ from the tax rules.
Frequently asked questions
Can our 501(c)(3) endorse a candidate if we do it only once, informally?
No. The prohibition has no minimum amount. An endorsement made on behalf of the organization, in a newsletter, from a podium at an official event or on your website, is campaign intervention.
Can we hold a candidate forum if one candidate refuses to come?
Rev. Rul. 2007-41 describes a historical society that invited all candidates, stated that the speaking order was set at random, and announced that one candidate declined. With the other neutrality factors present, that was not campaign intervention.
Can our executive director volunteer for a campaign?
Yes, in a personal capacity. IRS guidance says leaders may speak for themselves as individuals but cannot make partisan comments in official publications or at official functions. Listing the director's title for identification purposes only, in materials the organization does not pay for, does not by itself attribute the support to the organization.
Can we criticize an incumbent's vote on a bill during an election year?
It depends on the facts. In Rev. Rul. 2007-41, a university ran an ad urging readers to contact a senator, who was also a candidate, about a pending bill scheduled for a vote. It was not campaign intervention because the ad did not mention the election, the issue did not distinguish the candidates, and the timing was tied to the vote. A similar ad with no scheduled vote, on an issue the opponent was campaigning on, was a violation.
Sources
- IRS: Rev. Rul. 2007-41, 2007-25 I.R.B.. irs.gov
- IRS: Publication 1828, Tax Guide for Churches and Religious Organizations (Rev. 8-2015). irs.gov
- IRS: Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities (Rev. 3-2018). irs.gov
- IRS: Publication 557, Tax-Exempt Status for Your Organization (Rev. January 2025). irs.gov
- Legal Information Institute: 26 U.S. Code § 4955, Taxes on political expenditures of section 501(c)(3) organizations. law.cornell.edu
- IRS: Instructions for Schedule C (Form 990) (2025). irs.gov
IRS forms, fees and inflation-adjusted amounts change. We review this page when the IRS publishes new instructions.
501Nonprofit.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.
