The ability of nonprofits to advocate politically is being examined, as reported by The National Journal, as a result of the recent Supreme Court decision that corporations are persons—long enshrined in law—and they have freedom of speech and cannot be restricted in their political donations and advocacy.
An excerpt.
“In the wake of the Supreme Court's recent ruling to deregulate corporate political spending, public attention has focused squarely on whether businesses and for-profit companies will now lavish big money on elections.
“But Citizens United v. Federal Election Commission may have as much or more impact on another type of incorporated organization -- nonprofits of all stripes. These include 501(c)4 advocacy groups, 501(c)5 labor unions, 501(c)6 trade associations and even 501(c)3 charities, which face both fresh opportunities and dangers in the wake of Citizens United.
“Associations and advocacy groups can be expected to ramp up their political activities, election lawyers say. At the same time, the ruling -- by equating corporate and individual First Amendment rights -- could trigger sweeping changes in IRS law as it applies to political activity, some tax experts say. All this could thrust 501(c)3 charities, which are now barred from engaging in partisan political activities, into an uncomfortable spot.
"Potentially, it's going to profoundly change nonprofit tax law," said Frances R. Hill, a professor at the University of Miami School of Law. Questions raised by the ruling include: Is the ban on partisan political activity for 501(c)3 charities now vulnerable to constitutional challenge? What about the ban on charities making political contributions? It's only a matter of time before these questions land before the high court, Hill argued.
"Their general constitutional principle is that corporations are persons, and we can't distinguish among them," Hill said of the Supreme Court. "So I would regard it as a sweeping case that has the potential for changing the entire landscape for exemption in the area of political involvement."
About
- David H. Lukenbill
- I am a California native, married, we have one daughter and live close to the American River with two cats and all the wild critters we can feed. I am a management consultant to nonprofit organizations and have an Associates of Arts degree in Administration of Justice from Sacramento City College, a Bachelor of Science degree in Organizational Behavior from the University of San Francisco and a Master of Public Administration degree, also from the University of San Francisco.