Charities and Campaign Finance Reform

Nonpartisan Voter Education and Participation Activity of Charities

The substance, form and content of voter education and participation communications by charities must avoid any appearance of support or opposition to a candidate. (Violation of this rule can result in loss of tax-exempt status and financial liability for directors and managers.) These activities are necessary to provide voters with unbiased information and to encourage greater participation in the democratic system. They should not in any way be limited or prohibited by campaign finance reform legislation.

1. Candidate Debates and Forums

   • All viable candidates must be invited;

   • Location must be free of political considerations;

   • A broad range of issues of importance to voters must be addressed;

   • Questions must be impartial and all candidates given equal opportunity to respond;

   • The moderator must be impartial and inform the audience that positions of the candidates do not reflect positions of the sponsoring organization;

   • Results can only be reported without editorial comment in the sponsor's regular channels of communication.

2. Voter Guides and Candidate Questionnaires. Unlike voter guides published by 501(c)(4) organizations, PACS, unions or trade associations, 501(c)(3) voter guides must meet these requirements:

3. Questions must be framed in a manner that does not suggest right or wrong answers or promote the organization's agenda;

4. Questionnaires must be distributed to all candidates;

5. Responses can be limited to a set number of words, but cannot be edited, summarized or characterized in any way;

6. The format cannot create an appearance that one or more candidates is acceptable or unacceptable to the organization.

7. Candidate Briefings

   • 501(c)(3) organizations can conduct issue briefings with candidates or party platform committees as a means of advancing their position on issues if the following requirements are met:

   • All candidates and/or political parties are offered the opportunity for a briefing;

   • The charity does not publicize candidate or party endorsement of their position.

8. Get Out the Vote and Voter Registration Drives

   • The content of messages in voter participation drives must be limited to encouraging people to vote, not promotion of a position on an issue;

   • The choice of audience must be based on neutral criteria that reflect a group's underlying purpose or practical constraints. For example, a farm group can encourage farmers to vote, but cannot focus its efforts on districts that historically vote for any particular political party.

Issue Advocacy by Charities Must Be Nonpartisan

Charities can take positions on issues, even during an election cycle, in the following ways:

1. Legislative Lobbying

   • Direct lobbying to members of legislative bodies;

   • Grassroots lobbying asking the general public to contact legislators and ask them to support or oppose specific legislation.

2. Legislative Voting Records and Scorecards

   • There must be no appearance of endorsement or opposition to re-election of any legislator based on evaluation of their past voting record;

   • Votes of all incumbents in the region of the charity must be reported;

   • There can be no indication of what legislators are up for re-election;

   • No mention of opposing candidates or their positions can be made;

   • Evaluation of votes is permissible IF it is part of a continuing program to report on the 501(c)(3)'s lobbying efforts and circulation is limited to those that normally receive such newsletters or communications.

3. Criticism of Incumbents Not prohibited Intervention in an election IF:

   • Charity has a track record of criticism on issues, and does not confine its statements to an election cycle;

   • Focus of criticism is on issues, not a candidate;

   • No comparison is made to an opposing candidate's position on the issue;

   • The level of criticism is not increased during the election cycle.

4. Issue Advocacy and Public Education

   • Nonpartisan public education focused on issues with no comparison of candidates' positions is permissible;

   • No coordination of the educational message with a candidate or party allowed;

   • Disclaimers of candidate or party affiliation should be included in communications;

   • Incumbent elected officials may be invited to speak at organizational meetings to inform their constituents and hear their input, but may not mention any campaign for re-election.

NOTE:

In spite of the high visibility given to "sham issue advocacy" during the last election cycle, charities were not cited as vehicles for "sham issues advocacy" ads. Prohibitions on public communications by charities constitute a solution in search of a problem.