Churches and other non-profit organizations that hold 501(c)(3) tax-exempt status must abide by Internal Revenue Service regulations barring any involvement in partisan politics. The blanket prohibition concerns only races for public office, not issues. Religious leaders may speak out from the pulpit or in other forums on moral and political issues. However, churches and pastors may not endorse candidates for public office or advise congregants to vote for or against certain candidates. Federal tax law in this area is quite strict, and the IRS has indicated that it follows a "zero tolerance" policy toward violations.
Q. What types of activities are prohibited under the IRS Code?
A. Church endorsements of candidates and statements of opposition to candidates are strictly forbidden and can result in revocation of a church's tax-exempt status. (However, clergy may endorse candidates as individuals in forums outside the church or work on behalf of candidates during their personal time.)
In addition, churches may not contribute money to candidates, solicit contributions on their behalf or donate to candidates' political action committees. Churches may not set up their own PACs.
Q. What constitutes an endorsement or opposition to a candidate?
A. Prohibited activities may include letters of endorsement or opposition printed on church letterhead, church-sponsored distribution of campaign literature, pastors advising congregants to vote for or against candidates from the pulpit, the display of campaign signs on church property and other activities that could be construed as endorsing or opposing a candidate.
Q. What is the penalty if a church violates this standard?
A. Penalties can include loss of tax-exempt status or financial penalties imposed on church officials.
Q. Has this ever happened to a church?
A. Yes. The Church at Pierce Creek in Binghamton, N.Y., lost its tax-exempt status in 1995 after the IRS determined it had violated federal tax law by publishing a full-page ad in USA Today in late October of 1992 advising people that voting for presidential candidate Bill Clinton was a sin. The church sued in federal court to regain its tax-exempt status but lost in federal district court. A federal appellate court later upheld the ruling denying the church tax-exempt status.
The IRS is watching. The IRS regularly issues statements reminding churches and other non-profits to stay out of partisan politics, and the federal tax agency does not hesitate to penalize organizations that violate this standard.
Q. What types of political activities can houses of worship engage in?
A. There are many. For example, houses of worship may sponsor voter registration drives. They may encourage voting and even help people get to the polls on election day. They may not tell people who to vote for.
Houses of worship can also sponsor non-partisan candidate forums. Religious groups may sponsor forums at which all legally qualified candidates for a given office are invited to appear. The questioning should be non-partisan in nature and broad, covering a range of issues, not just moral or social issues of concern to the church.
Churches may send questionnaires to candidates and ask them where they stand on issues. However, before distributing the answers, churches should make sure the answers are accurate and that the questionnaire covers a wide range of issues. Questionnaires should be sent to all candidates, and the church should not compare the candidates' answers to the church's preferred position on issues.
Q. Can religious leaders speak out on political or moral issues?
A. Yes. The IRS prohibition on partisan politicking concerns individuals seeking public office, not issues. Religious leaders may take stands on political issues such as abortion, gay rights, gun control, health care and many others. They may also support or oppose ballot referenda.
Q. What about voter guides? Can they ever be distributed in churches?
A. Houses of worship should be extremely wary of voter guides produced by outside groups, such as the Christian Coalition. Many of these groups hold a different type of tax-exempt status, a status that permits them to engage in some political activities that churches are not permitted to take part in. Also, when a guide has been produced by an outside organization, church leaders have no way of knowing if the answers are accurate or if the guide has been intentionally slanted to favor a certain candidate. The Christian Coalition has been accused of both intentionally slanting its guides and including inaccuracies of some candidates' positions. In fact, strong evidence exists to indicate that this is a common practice for the group. Moreover, Christian Coalition guides rarely, if ever, cover a wide range of issues. If a voter guide produced by an outside group is determined to be partisan in character and is distributed in church, the IRS has the legal right to penalize the church even though it did not produce the guide.
Q. Isn't it true that a federal court has cleared the Christian Coalition's voter guides for distribution in houses of worship?
A. No, that is not true. The Federal Election Commission sued the Christian Coalition, charging that the group illegally coordinated its activities with Republican campaigns. A federal court dismissed the bulk of this case. This case dealt with federal election law, which is full of loopholes, not federal tax law, which is much tighter. The decision did not exonerate Coalition voter guides. In fact, the federal court that heard the FEC's case specifically stated in its opinion that Christian Coalition voter guides clearly favor certain candidates over others. Americans United has also prepared additional legal information about the FEC case and how it relates to the voter guide issue.