Elections and Religious Organizations

As I sit here on this election day, it seems that this is a good time to review the restrictions on Non-Profits when it comes to political campaigns.  The IRS website states,

“Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.  Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. ”

Religious organizations and politics

This means that your religious organization cannot campaign in favor of or against an individual candidate or group of candidates, or in favor of, or against, a political party.

So what can you do?  You can tell people to vote, and you can run voter registration drives so long as you do it in a non-partisan manner.  It is not worth your organization’s tax exempt status to campaign for a particular politician or party.

One church lost its tax exempt status for purchasing ads that were critical of the incumbent President (no, it was not Donald Trump.  It was Bill Clinton).  The IRS was correct in doing so.  This church overstepped its bounds in purchasing these ads.  There are a multitude of political organizations that exist to promote one party or one candidate over another.  Religious organizations don’t need to jump into this fray.

Hubris of Some Religious Organizations

These are not what religious organizations are for.  The leadership of religious organizations spend a lot of time teaching their congregants how to live according to the precepts of the organization.  They may feel that this gives them the obligation to tell their people how they should vote, but not in the United States.  Each individual is responsible for their own vote, and they should vote as they themselves feel is the best for them.  No one can tell them otherwise.

Some religious organizations may believe that their congregants all think the same way with regard to politics, and that this reflects the political views of the religious leader, but they might be surprised to find that this is not the case.  Those who disagree with the leadership on political matters may feel inhibited from expressing their opinion except in the privacy of the voting booth.  Or they may be too polite to discuss politics with people who obviously disagree with them.

Many religious organizations want a homogeneous group of cookie-cutter people who all act the same and think the same.  This is unrealistic and dangerous.  This is cult-like behavior that is worthy of the Peoples Temple.

Most mainstream religious organizations want to show that they are open and tolerant of all.  Engaging in political activity is directly counter to this belief.

First Amendment

There are many people in the United States who believe that no religious organization should have a tax exempt status because of the First Amendment “separation of church and state.”  The First Amendment of the Constitution of the United States simply says, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

Since tax exemption has nothing to do with the establishment of religion or the free exercise thereof because it is available to all religious organizations, the IRS has been able to fend off this type of criticism.  Besides, it requires an act of Congress.  So where does tax exemption come into play?

The United States has the largest non-profit sector in the world with 1.6 million non-profits — not just religious organizations, but all non-profits.  These non-profits employ 10 percent of the workforce with 25 percent of all adults volunteering with non-profits.  (Data from the Independent Sector).  Through the history of the United States, non-profits have provided valuable services to the community which has lessened the burden on government.  To facilitate donations to these non-profits, donations are tax deductible for the donor and the income is exempt from taxation by the IRS.

No non-profit wants to upset this because the loss of tax exempt status means that the organization will have to pay the corporate income tax rate on their income, and the donations are not tax deductible for the donors.  It would essentially put them out of business.

Keep on the Narrow Path

To maintain a tax exempt status, a religious organization should remove itself from politics and focus on teaching the tenets of the faith to the seekers.  The leadership of the organization should not worry about the voting record of individuals and focus on their spiritual development.  The organization can serve the community through the charitable acts that all faiths embrace.