IRS Report on Churches and Political Activity

Internal Revenue Service officials have released a recent report, with executive summary, on the agency's examination of political activity by tax-exempt organizations during the 2004 election campaign. The report found some level of prohibited political activity by section 501(c)(3) organizations in nearly three-quarters of the cases reviewed.

During every election cycle, many religious congregations find themselves wondering what role, if any, they can play in the political process. Can a minister, rabbi, imam or other member of the clergy endorse a candidate from the pulpit or speak on issues of interest to voters? Is a church or other house of worship legally permitted to register voters or issue voter guides? Answers to these and many other questions are contained in Politics and the Pulpit: A Guide to the Internal Revenue Restrictions on the Political Activity of Religious Organizations by the Pew Forum on Religion and the Public Life, available from http://pewforum.org/publications/reports/politicspulpit.pdf.

In connection with their recent report, the IRS is also unveiling new procedures for the 2006 election season, which provide additional guidance to charities regarding political activities. As part of its approach to combating this activity, the IRS has begun its educational and enforcement efforts to help ensure that charities have enough advance notice of the statutory rules against engaging in political activities.