The Dangerous Grey Zone: When Nonprofits Cross the Line Between Politics and Advocacy

Let's start with the biggest no-nos in the not-for-profit industry, partisan political activities.

For IRS purposes, partisan political activities, also called political campaign intervention, means any action by a not-for-profit that supports or opposes a candidate for public office.

For 501[c][3] organizations, the rules are simple.

It's prohibited.

There are no exceptions for small dollar amounts.

There's no materiality test.

It's not allowed.

The IRS says a not-for-profit is in violation of this rule if it participates in, intervenes in any political campaign on behalf of or opposed to any candidate for public office, including the publishing or distributions of statements.

In plain English, if your organization is perceived as taking sides in an election, you're in the danger zone.

A few things to know when it comes to campaign interventions.

It involves any activity, both direct or indirect.

It may involve spoken, written, or digital communication, and it applies to any candidate, whether they're federal, state, or local.

Here's a common scenario.

You invite an elected official to two of your programs.

That's often fine.

The risk shows up when the event looks like a campaign stop.

Signs, fundraising, re-election language, or introductions that praise the candidate's platform.

The same event can be educational or it can be campaign intervention, depending on facts and optics.

The IRS generally treats the following activities as prohibited for a 501[c][3] organization.

Endorsing or opposing a political candidate.

Making contributions, cash or in-kind to a candidate, either to their political party or to their PAC.

Publishing or distributing statements favoring or criticizing a candidate.

This includes social media.

Allowing a campaign to use your organization's resources, whether it's office space, staff time, mailing lists.

This could include allowing staff to work on political campaigns while they're supposed to be at work.