In the United States, religious institutions and other 501(c)(3) organizations enjoy tax-exempt status, which provides significant financial benefits. However, this status comes with strict legal responsibilities. Under the Internal Revenue Code, these entities are absolutely prohibited from participating in or intervening in any political campaign on behalf of or in opposition to any candidate for elective public office.
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What Constitutes Prohibited Political Activity?
The IRS defines prohibited activity as any direct or indirect intervention in a political campaign. This includes, but is not limited to:
- Endorsing a specific candidate from the pulpit or in official publications.
- Distributing campaign literature or statements on behalf of a candidate.
- Using church resources, such as mailing lists or facilities, to support a partisan campaign.
- Making financial contributions to political campaign funds.
How to Report Potential Violations
If you believe a 501(c)(3) organization, such as a church, is engaging in prohibited political campaign activity, you have the right to report it to the Internal Revenue Service. Follow these steps to ensure your report is handled correctly:
Gather Documentation
The IRS requires evidence to investigate a claim. Before filing, collect:
- Copies of newsletters, flyers, or bulletins containing political statements.
- Recordings or transcripts of speeches or sermons that advocate for or against a candidate.
- Photographs of campaign signs on church property or evidence of partisan literature distribution.
Complete Form 13909
The official method for reporting a tax-exempt organization is by filing Form 13909, Tax-Exempt Organization Complaint (Referral) Form. You can find this form on the official IRS website. The form allows you to provide the name and address of the organization, the nature of the violation, and your contact information (though you may submit it anonymously).
Submit the Referral
You can submit your completed Form 13909 and any supporting documentation to the IRS via email at eoclass@irs;gov or by mail to the address specified on the form instructions. Be as specific as possible regarding the date, time, and nature of the activity.
The Consequences of Non-Compliance
Engaging in partisan political activity is a serious breach of the conditions for tax exemption. Consequences for the organization can include:
- The imposition of excise taxes on the political expenditures.
- Formal warnings or audits by the IRS.
- In severe cases, the complete revocation of tax-exempt status, which requires the organization to pay federal income taxes on its earnings.
It is important to distinguish between prohibited partisan activity and permissible non-partisan activity. For example, churches are allowed to host candidate forums if they are conducted in a neutral, non-partisan manner that provides equal opportunity to all candidates. Reporting should be reserved for clear instances of partisan advocacy that violate federal law.
