Monday, September 6, 2010

Can Non-Profits Advocate For or Against California Propositions?

There is a lot of buzz lately in the local community about whether or not local non-profit organizations ("NPOs") can advocate for or against propositions.

The IRS states that generally “no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax exempt status.”

These 501(c)(3) organizations, like Sierra Business Council and the Church of Latter Day Saints, walk a fine line when supporting and opposing propositions and should do so only after consulting legal counsel in order to protect against the revocation of their tax-free status.

The rest of the CABPRO article is here.

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