Tax-Exempt Organizations: Political Activity Restrictions and Disclosure Requirements

Publication Date: September 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance; Politics

Type:

Abstract:

Recently, significant attention has been paid to the political activities of taxexempt organizations. In particular, the activities of IRC § 501(c)(3) charitable organizations, § 501(c)(4) social welfare organizations, § 501(c)(5) labor unions, § 501(c)(6) trade associations, and § 527 political organizations have been scrutinized.

This report discusses the limitations that the Internal Revenue Code places on political activity, including lobbying and campaign intervention, by tax-exempt organizations. It focuses on the above organizations, but also discusses the restrictions on the other types of tax-exempt organizations. The report ends with a summary of the information that tax-exempt organizations must report to the Internal Revenue Service about their political activities and whether the information must be made publicly available.