Non-profit organizations, particularly 501(c)(3) public charities and 501(c)(4) social welfare groups, operate under specific federal tax regulations that govern their advocacy and political activities. Understanding these distinctions is crucial, especially when it comes to activities like comparing candidates in the political arena. This guide clarifies what these organizations can and cannot do, focusing on the critical differences in permissible actions related to political engagement and candidate comparisons.
For 501(c)(3) entities, the law strictly prohibits any support for or opposition to political candidates. Their advocacy must remain nonpartisan. Conversely, 501(c)(4) organizations have more latitude and can engage in some partisan activities, provided that such political involvement is not their primary focus. Both types of organizations must always adhere to federal, state, and local election laws when participating in any form of political activity.
| Activity | 501(c)(3) Public Charity | 501(c)(4) Social Welfare Organization |
|---|---|---|
| Lobbying for or against legislation | Limited | Unlimited |
| Supporting or opposing ballot measures | Limited | Unlimited |
| Conducting public education and training on political process participation | √ | √ |
| Educating candidates on organizational issues (must be offered to all) | √ | √ |
| Sponsoring candidate debates (all viable candidates invited, equal opportunity to speak) | √ | √ |
| Distributing voter guides with candidates’ views on broad issues | √ | √ |
| Distributing voter guides comparing candidates on organizationally important issues | x | √ |
| Renting mailing lists/facilities at fair market value to candidates (must be offered to all at same price) | √ | √ |
| Nonpartisan get-out-the-vote (GOTV), voter registration, and education drives | √ | √ |
| Voter registration and GOTV activities based on party affiliation or voting preference | x | √ |
| Nonpartisan voter protection activities | √ | √ |
| Establishing a 501(c)(4) organization | √ | √ |
| Endorsing candidates and publicizing endorsements | x | √ |
| Funding independent expenditures for or against a candidate | x | √ |
| Making campaign contributions (monetary or in-kind) | x | Depends on election law |
| Funding administrative/fundraising costs of a connected political organization | x | √ |
| Criticizing elected officials (not personal attacks or attacks in candidate status) | √ | √ |
| Comparing organizational issue positions with candidate stances | x | √ |
| Connecting criticism of public official to voting in an election | x | √ |
| Highlighting candidate differences on high-profile issues with diverging views | x | √ |
| Asking candidates to sign pledges on any issue | x | √ |
| Posting partisan political messages on social media | x | √ |
As illustrated in the table, a key distinction emerges when comparing candidates directly. While both 501(c)(3)s and 501(c)(4)s can educate candidates and distribute voter guides outlining candidate views on broad topics, 501(c)(3) public charities are explicitly restricted from distributing voter guides that Compare Candidates on issues relevant to the organization. This restriction extends to comparing an organization’s stance on issues with those of specific candidates, highlighting differences between candidates on key issues, and connecting criticisms of officials to election outcomes. Essentially, 501(c)(3)s must avoid any activity that could be interpreted as favoring or opposing a particular candidate.
On the other hand, 501(c)(4) social welfare organizations are permitted to compare candidates and engage in activities that might highlight candidate differences. This allowance is crucial for 501(c)(4)s to fulfill their broader advocacy goals, which can include influencing legislation and policy through political engagement. However, it’s important to reiterate that for 501(c)(4)s, partisan political activity cannot be their primary purpose.
In conclusion, when considering activities related to comparing candidates, non-profit organizations must be acutely aware of their 501(c)(3) or 501(c)(4) designation. 501(c)(3) public charities must maintain strict nonpartisanship and refrain from activities that directly compare candidates, while 501(c)(4)s have the flexibility to engage in candidate comparisons as part of their broader advocacy efforts, always within the bounds of election law and ensuring it’s not their primary activity. For detailed guidance, refer to resources like “The Connection: Strategies for Creating and Operating 501(c)(3)s, 501(c)(4)s and Political Organizations” and “The Rules of the Game: A Guide to Election-Related Activities for 501(c)(3)s” for comprehensive understanding and compliance.
