ABA Also Recommends Guidance on Political Activity for Tax-Exempt Groups

The American Bar Association (ABA) Section of Taxation submitted recommendations [1] for inclusion in the 2009-2010 Treasury Department and Internal Revenue Service (IRS) guidance priority list. Their recommendations included multiple items for nonprofit organizations. In particular, "methods for determining whether an organization is conducting political activities (including both candidate campaign intervention and improper private benefit to partisan interests) as its primary activity (consistent with section 527 exemption), or as a less-than-primary activity (consistent with non-charitable section 501(c) exemption)."

Additional guidance supplementing Revenue Ruling 2007-41 to address (a) standards for oral speech by charitable representatives, (b) voter guide methodology, (c) the relationship between the federal tax rules on issue advocacy and the Federal Election Commission rules for electioneering communications, (d) standards for links between charitable websites and those containing political material, and (e) how charities (including those with a single issue focus) may present policy issues to candidates and publicize their responses, beyond candidate questionnaires and debate sponsorship.

OMB Watch also submitted comments [2] that urge the IRS to address the definition of prohibited political activity for tax-exempt charities and religious organizations.