Navigating Campaign Rules for Nonprofits – What You Need to Know

Nonprofit organizations do amazing work—feeding the hungry, helping the homeless, supporting community initiative — but you know that already. When it comes to politics, however, especially during election season, nonprofits need to be extra careful. Whether you’re running a charity, a church, or any kind of 501(c)(3) organization, there’s a big rule you need to follow: stay out of political campaigns!

This idea for this post originated as one of our YouTube videos earlier in 2024.  In that video, we answered questions submitted by 3 different subscribers specifically about campaign issues in their nonprofits.  We’ll expand on that Q&A here and break down these great questions about what nonprofits can and can’t do when it comes to political activities.

Understanding these rules can save your organization from some serious trouble with the IRS!

Let’s start with a question from Jeff in Texas. Jeff asked if it’s OK for a church trustee to run in a partisan election, wear campaign gear at church, and use church property for campaign activities. The short answer: Nope, not OK!

Nonprofits that are classified as 501(c)(3) organizations—churches, charities, and the like—are strictly prohibited from getting involved in political campaigns. This means no endorsing candidates, no campaign signs on your property, no fundraising for political candidates, and no using organizational resources to support a campaign.

Why is this? Well, it all goes back to the special tax benefits 501(c)(3)s get. Donations to these organizations are tax-deductible for the donor, which is a huge incentive for people to give. In exchange for this perk, 501(c)(3) nonprofits are required by law to stay completely neutral when it comes to political candidates. This isn’t a gray area—the rule is absolute.

The law that enforces this rule is called the Johnson Amendment, named after President Lyndon B. Johnson. The idea behind it was to keep charitable organizations focused on their missions, not on politics. After all, political campaigns are often divisive and can distract from the good work nonprofits are supposed to be doing.

But the Johnson Amendment has its critics. Some argue that it violates the free speech rights of nonprofits. After all, why should a nonprofit have to give up its right to speak out on political issues just because it’s tax-exempt? Frankly, that’s a view many of us at Foundation Group share.  During the Trump administration, enforcement of the Johnson Amendment was relaxed, and there was even talk of repealing it. Still, the law remains in place, and nonprofits need to follow it.

The bottom line: Your nonprofit cannot endorse, promote, or campaign for any political candidate. If you’re running a 501(c)(3), you must keep your political activities to a minimum. It doesn’t matter if it’s a church trustee or the board president of a charity—campaigning within the nonprofit is off-limits.

Here’s another great question, this one from Bridgett in Washington State. Bridgett’s on the board of a homeless shelter, and their board president invited a congressional candidate to speak at a fundraising event. The candidate’s views aligned with the board’s stance on homelessness, and their communications director even endorsed the candidate in an email newsletter. Bridgett wants to know if this is OK.

Sorry, Bridgett, but this crosses the line. 501(c)(3) organizations cannot host candidates for political office and give them a platform to campaign, even if you agree with their views.

However, nonprofits can absolutely engage in issue-based advocacy. You can talk about the issues that matter to your cause—whether it’s homelessness, healthcare, or education. You can even encourage people to support candidates who align with your organization’s mission, as long as you’re not naming specific candidates. The key is to stay nonpartisan and focus on the issues, not the politicians.

Next up, Casey from Georgia asked about her charity’s involvement in promoting a local referendum. She was worried that getting involved in politics could jeopardize the organization’s 501(c)(3) status. Fortunately for Casey, she doesn’t have to worry.

There’s a big difference between supporting a political candidate and advocating for a policy or referendum. Nonprofits are allowed to get involved in lobbying for or against specific policies, as long as it doesn’t take up too much of the organization’s resources. So, if your nonprofit is backing a referendum that aligns with your mission, you’re probably in the clear. Just make sure this advocacy is a small part of your overall activities.

If your organization wants to do more formal lobbying, you can file Form 5768 with the IRS and opt into something called the 501(h) election. This sets limits on how much money you can spend on lobbying, based on your organization’s size and budget. It gives you some guidelines to follow so you don’t accidentally go overboard with your political advocacy.

At the time of original publication, we’re 1 month out from a Presidential election.  Nonprofits should remember to stay away from political campaigns. Here’s the key takeaway: Campaigning for a specific candidate is a big no, but lobbying for policies or advocating for issues related to your mission is allowed—just keep it within limits.

Nonprofits do incredible work that often overlaps with important political issues. But if you’re running a 501(c)(3), it’s crucial to follow the rules and keep your organization focused on its charitable mission. Political campaigns? No way. Policy advocacy? Yes, but be careful. Stick to these guidelines, and your nonprofit will be able to continue its great work without risking its tax-exempt status.