Sharon Want Discusses Advising Tax-Exempt Organizations During an Election Year at ABA May Tax Meeting

The Johnson Amendment has long prohibited 501(c)(3) organizations from engaging in political campaign activities, although certain nonpartisan voter education and registration activities are permissible. In contrast, 501(c)(4) organizations can engage in political campaign activities, provided those activities are not their primary purpose. This primary purpose test is evolving in the courts. And then there is a related question of when to create a section 527 organization. Panelists will discuss legal considerations arising for nonprofits engaged in work that intersects with campaign activities in preparation for mid-term elections this fall.