Proposed Changes To Tax-Exempt Orgs’ Political Campaign Activity

The Treasury and IRS have proposed revisions to the regs under Sec. 501(c)(4) that would address and clarify the involvement of tax-exempt social welfare organizations in political campaign activities. The proposed regulations would replace the phrase “participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office” with a new term, candidate-related political activity, to differentiate the proposed Section 501(c)(4) rule from the current Section 501(c)(3) standard.

Candidate-related political activity would include contributions to candidates, communications that expressly advocate for the election or defeat of a political candidate, voter registration drives, the distribution of material on behalf of a candidate, and the distribution of a voter guide and accompanying materials referring to a candidate or a political party.

The proposed changes would be effective when published in final form in the Federal Register.  Contact us if you have questions on how these proposed changes may affect your organization.