The well-publicized U.S. Supreme Court decision in the Citizens United case has created a fair amount of confusion among charities. The decision is seen (accurately) as undoing some significant restrictions on political activity by nonprofits, which has led many charities to wonder what the new rules mean for them.
The ten-word answer for charities is: The new rules are the same as the old rules.
Citizens United did not change the rules for Internal Revenue Code section 501(c)(3) charities, though it does have major impacts on other nonprofits, such as section 501(c)(4) social welfare organizations and 501(c)(6) trade groups. Those noncharitable nonprofit organizations have an expanded ability to engage in some types of advocacy in election campaigns. Charities still have to avoid any campaign intervention as a condition of their 501(c)(3) status.
Though the details are complex, the most important parts for charities can be summarized with a few bullet points:
- All 501(c)(3) charities still need to steer clear of any participation in election campaigns.
- Private foundations still cannot engage in any lobbying.
- Publicly supported charities still can engage in limited lobbying.
If you have any questions about whether your organization is engaging in political activity, get expert advice. Failure to comply with applicable rules can have significant consequences.
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