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Churches, Politics, and the IRS

By October 5, 2007June 6th, 2014No Comments

From the time the Jamestown settlers landed in Virginia in 1607 and the Massachusetts Pilgrims followed in 1620, America’s pastors were political as well as spiritual leaders. For instance, every year at election time, the New England pastors would preach “Election Day” sermons to inform their members about the issues and candidates in the upcoming elections. Pastors were leaders in the run-up to the Revolutionary War, “preaching liberty” and encouraging the colonists to pursue freedom from England.

During the Revolutionary War, pastors led militia units composed entirely of their church members. Does the problem of church and politics arise out of the Constitution — maybe from the alleged “separation of church and state”? The answer is no. The initial Revolutionary War battle was fought by the Lexington minutemen who were members of the town church pastored by Rev. Jonas Clark. A statue stands in the U.S. Capitol Rotunda today memorializing Rev. John Peter Muhlenberg, who recruited a militia from his church for service in the American Revolution. The Rotunda statue portrays Rev. Muhlenberg exchanging his robe for a military uniform in the pulpit. He recruited three hundred men to follow him to the battlefield that afternoon. Yet today the IRS warns pastors and churches to stay out of politics.

The IRS Code places restrictions on political activity by churches only because of a 1954 amendment to the tax code promoted by Lyndon Baines Johnson, then minority leader of the House of Representatives. Early in his career Rep. Johnson had been opposed as a political candidate by a nonprofit group in Texas. When he had the power to do so, he “got even” by enacting a law limiting the involvement that nonprofit groups could have in political activity and primarily in supporting or opposing candidates for office. Historians believe this tax code revision had unintended consequences for churches, which are also nonprofit institutions. Rep. Johnson’s ire had been aimed at secular, not religious, nonprofit groups. But both groups were caught in the crossfire of his anger.

Some members of the House of Representatives are attempting to repeal these political limitations on churches, but so far without success. Meanwhile, the limits continue and the IRS has issued Tax Guide for Churches and Religious Organizations to help these organizations maintain their tax-exempt status. The Code primarily addresses two areas of political activity: lobbying and political campaigns.

Lobbying

GENERAL RULE: Churches and nonprofit organizations may not engage in any substantial lobbying activities that attempt to influence legislation. This means that churches may engage in some activities that attempt to influence legislation.
“Legislation” includes action by Congress, any state legislature, any local council, or similar governing body with respect to acts, bills, resolutions, or similar items (such as legislative confirmation of appointive office), or by the public in referendum, ballot initiative, constitutional amendment, or similar procedure. The Christian Law Association recommends that the amount expended on the pursuit of such activities should not exceed 5 percent of the gross annual revenues. This recommendation is called the “5 percent rule” in the following list of recommendations.

A church may do the following:

  1. Use its facilities to allow lobbying groups to discuss social issues (subject to the 5 percent rule).
  2. Rent or lend the church mailing list to lobbying groups (subject to the 5 percent rule).
  3. Participate in petition drives that support or oppose specific proposed legislation.
  4. Encourage members to communicate with legislators regarding their support or opposition of specific proposed legislation.
  5. Hire a lobbyist to communicate with legislators regarding its support or opposition of specific proposed legislation (subject to the 5 percent rule).
  6. Distribute position papers that support or oppose specific proposed legislation (subject to the 5 percent rule).

In addition, a church may do the following without limitation or concerns regarding the 5 percent rule:

  1. Preach sermons on social issues and political issues.
  2. Support or oppose legislation that directly affects its organizational structure and operation without a 5 percent limitation.
  3. Engage in education on the political process and provide information regarding political issues. Only when the church advocates against a specific proposed legislative action does the 5 percent limitation apply.

Political campaigns

GENERAL RULE: Unlike the prohibition against substantial attempts to influence legislation, the prohibition against participating in political campaigns is absolute. Section 501(c)(3) permits some lobbying activity, but a church or other tax-exempt organization may absolutely not campaign for or against political candidates.
Because the prohibition against participating in political campaigns is absolute, the IRS focuses much more attention on it. Violation of the prohibition against participating in political campaigns may result in the immediate revocation of the church’s tax-exempt status.

DON’Ts—Political activities churches and nonprofit organizations should not do:

  1. Make statements in support or opposition of political candidates for public office. Note: A pastor personally may make statements in support or opposition of political candidates for public office, but not in his official capacity (which would bar him from making statements during church meetings and in church communications).
  2. Make contributions to a candidate for public office or allow candidates to solicit contributions on the church premises or during church activities.
  3. Make contributions to Political Action Committees.
  4. Make “in-kind” contributions or expenditures for or against candidates for public office. Such contributions would include allowing a candidate to speak in a church service about his or her candidacy; allowing a candidate to pass out campaign literature at the church; allowing the candidate to collect names and addresses at the church, to use the church mailing list or directory, or to use church facilities; and providing volunteers from the church.
  5. Support or oppose candidates for judicial office even if the candidates are required to run on a nonpartisan basis.

DOs—Political activities churches and nonprofit organizations may do:

  1. Allow a candidate for public office to appear at a church meeting or service as long as it is not for campaign purposes.
  2. Introduce a candidate to the congregation as a visitor during a church meeting or service.
  3. Allow a candidate for public office to preach or read Scripture as long as the candidate does not “preach” about his campaign or solicit volunteers or finances for the campaign.
  4. Conduct nonpartisan voter registration programs and get-out-to-vote campaigns.
  5. Distribute neutral voter information materials stating the positions of the candidates for public office on the issues of the campaign.
  6. Rent its mailing list to candidates for public office; however, the list must be made available to all candidates for that public office on the same terms and at the same prices.
  7. Allow candidates to use the church facilities; however, all other candidates for that public office must be invited to use the facilities on the same terms.

David C. Gibbs is founder and president of Christian Law Association, a nationwide legal ministry dedicated to defending Christian liberty in America. Read more about his ministry in “Christians Can Take These Lawyers to Court” in the Baptist Bulletin (March 2007). If you need legal assistance or have a legal question and would like to speak with an attorney associated with the Christian Law Association, please visit www.christianlaw.org or call the CLA office at 727-399-8300.