Although 501(c)(3) tax-exempt organizations cannot engage in partisan political activity and are limited in the amount of lobbying they can do, they are permitted to engage in a variety of nonpartisan voter education and voter participation projects. Such projects may include public education, advocacy on controversial policy issues, and efforts designed to increase voting by disadvantaged or excluded groups in society.

“Know the Rules” describes some of the types of election-related activities 501(c)(3)s can engage in and provides an explanation on the general rules that apply in this area. The materials presented on these pages concentrate mainly on section 501(c)(3) organizations that qualify as public charities with some attention to private foundations, and 501(c)(4) groups.

Because the application of law is fact-sensitive and context is critical, these pages are meant to provide you with general guidelines only and should not be relied upon as legal advice. Questions often arise in gray areas of the law, where there is no obvious right or wrong answer, and in these cases organizations should consult their own counsel or tax advisors to receive guidance. In addition, it is important that all organizations consult their state election laws to ensure that all activities in which they seek to engage are permitted under state law.

Organizations should also be aware of the recent Supreme Court decision in Citizens United v. the Federal Election Commission that allows corporations, unions and some nonprofits to spend money on campaign communications supporting or opposing candidates. 501(c)(3) nonprofits are still prohibited from engaging in such partisan political communications, but legislative proposals in response to the decision could impact issue ad activity by 501(c)(3)s.

Finally, note that the pages presented here deal only with tax issues and not with the Federal Election Laws, which generally do not affect 501(c)(3)s as they can only engage in nonpartisan election activities. However, 501(c)(3) organizations that wish to broadcast issue ads that mention federal candidates during election times should review the Federal Election Commission rules on electioneering communications.