In the United States, churches and other religious organizations generally hold tax-exempt status under section 501(c)(3) of the Internal Revenue Code. This status comes with a strict condition: these organizations are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, any candidate for public office. When a religious institution crosses this line, it risks its tax-exempt standing. Understanding how to address these violations is essential for upholding the separation of church and state.
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Understanding the Prohibition
The IRS mandate is clear: 501(c)(3) organizations cannot endorse candidates, make financial contributions to political campaigns, or distribute statements that favor one candidate over another. While leaders of these organizations retain their personal right to free speech and can discuss public policy issues as individuals, they cannot use the organization’s resources, platform, or official functions to promote partisan political agendas.
What Constitutes a Violation?
- Direct Endorsements: Explicitly telling congregants to vote for or against a specific candidate from the pulpit or in official newsletters.
- Financial Contributions: Donating church funds to political campaigns or PACs.
- Partisan Materials: Distributing campaign flyers, buttons, or literature on church property during official events.
- Selective Website Links: Providing links to candidate-related material in a way that shows bias or favors a specific political party.
How to Report Alleged Violations
If you believe a religious organization is violating these federal rules, you can report your concerns to the Internal Revenue Service. The process is designed to ensure accountability while maintaining the integrity of the tax-exempt sector.
Step 1: Gather Evidence
Before filing a report, collect documented evidence. This may include:
- Screenshots of official website posts or social media pages.
- Audio or video recordings of sermons or official events where partisan activity occurred.
- Copies of church bulletins, newsletters, or emails containing political endorsements.
Step 2: File Form 13909
The primary method for reporting tax-exempt organizations is by filing Form 13909, Tax-Exempt Organization Complaint (Referral) Form. You can submit this form to the IRS via email at eoclass@irs.gov or by mail.
Step 3: Provide Detailed Information
When filling out the form, be as specific as possible. Include the organization’s full name, address, and Employer Identification Number (EIN) if known. Describe the specific activity you witnessed, the date it occurred, and how it relates to political campaign intervention.
Regulatory Consequences
The IRS reviews all complaints based on the facts and circumstances of each case. If a violation is confirmed, the consequences can be significant:
- Revocation of Tax-Exempt Status: The organization may lose its 501(c)(3) status, meaning it will be required to pay federal income taxes.
- Financial Penalties: The IRS may assess excise taxes on the political expenditures made by the organization.
- State-Level Action: In some jurisdictions, such as New York, state Attorneys General may take independent regulatory action if the organization violates state-level non-profit regulations.
By following these steps, you ensure that the rules governing religious institutions remain transparent and enforced, preserving the intended purpose of tax-exempt status in our society.
