6.
No Political Activity For or Against Candidates Permitted
Church tax exemptions are in jeopardy if an organization engages in direct political activity either against or on behalf of a political candidate or in an attempt to directly influence the passage of particular legislation. Churches and religious organizations, just as any other tax-exempt charitable organization, are free to comment on any social, political, or moral issues. They may not, however, speak out for or against political candidates if they wish to continue being tax-exempt. Losing tax-exempt status can mean both having to pay income taxes and that donations to the group will not be tax deductible by the donors.
Court Cases:
- United States v. Christian Echoes National Ministry
- Branch Ministries v. Rossotti
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"Churches cannot campaign for, or against, a candidate in any way, either directly or indirectly. Campaigning includes, but is not limited to, promoting a candidate or making campaign contributions. However, churches are permitted to participate in non-biased voter education activities without risking their 501(c)(3) status. Also, religious leaders can run for office without risking their church’s tax-exempt status. However, those candidates cannot campaign during official church functions.
Charitable organizations, including churches, are generally prohibited from participating in the political process. In general, no organization, including a church, may qualify for IRC section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation, known as lobbying; a church risks losing its 501(c)(3) status if it becomes involved in substantial lobbying activities. A church lobbies when its leadership contacts, or if it urges the public to contact, legislators with the intent to sway their votes. What constitutes substantial depends on the circumstances and a variety of factors are considered, including the time and money spent by the church on lobbying."
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