Proposed Rules May Curtail Political Activities by Nonprofit Organizations

Summary -

Last week, the Internal Revenue Service (“IRS”) published a proposed rule concerning the political activities of nonprofit organizations. The proposed rule may make it significantly more difficult for certain politically active organizations to claim tax-exemption under Section 501 of the Internal Revenue Code (“Code”).

Increasing Role of 501(c)(4)s in U.S. Elections -

Before 2010, most nonprofit organizations participating in U.S. elections were traditional political committees (“PACs”) that, under federal and state elections regulations, are generally required to disclose publicly all their donors and expenditures. Since 2010, however, nonprofit organizations that are not PACs have played an increasingly important role in U.S. elections. 501(c)(4) organizations have been particularly important in the shift, and are estimated to have spent more than $300 million in federal elections during the 2012 cycle.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Brownstein Hyatt Farber Schreck | Attorney Advertising

Written by:


Brownstein Hyatt Farber Schreck on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.