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How Nonprofits Can Navigate Political Engagement and Maintain Public Trust

NonProfit Quarterly

The lawsuit challenges the constitutionality of the Johnson Amendment—the provision in the code that prohibits 501c3 organizations from engaging in partisan electoral and political activities. This requires a clear understanding of the legal boundaries that define what 501c3 organizations can and cannot do in political activity.

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Understanding Unrelated Business Income in Nonprofits

The Charity CFO

It’s true that due to their uniquely valuable societal contributions, such as charitable actions or educational priorities, nonprofits receive tax exemption for income from activities substantially related to their primary purpose. . The activity is not substantially related to furthering the organization’s exempt, charitable purpose. .

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The Differences Between a 501(c)(3), 501(c)(4) and Other Tax Exemptions

NonProfit Hub

Lobbying, propaganda or other legislative activity must be kept insubstantial, which is generally interpreted as 10-20 percent of an organization’s activities. It can engage in some political activity as long as that activity is not the primary purpose, however, those expenses might be subject to taxation.

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2023 Legislative Session: A Recap

MNA Association

There were remarkable and numerous attempts to make litigation a non-charitable activity which would then be taxed. Like SB524 , SB557 would have made litigation expenses for nonprofits a non-charitable activity, subject to taxation. This will come up again. Sadly, we saw more of this in 2023.

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Looking for Tax Money in All the Wrong Places: Structural Racism at the IRS

NonProfit Quarterly

These provisions reinforce systemic racism and discrimination that have actively prevented Black people and other people of color from obtaining things like home and business loans—or benefitting from programs like the GI Bill that helped White people acquire homes, businesses, and land.

Taxation 115
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Civil Society Undermined by Conflict, Disinformation, and Repression of Protest

NonProfit Quarterly

Areas for advocacy could include progressive taxation, such as windfall and wealth taxes, social protection floors, universal basic incomes, union recognition and more effective business regulation” (33).

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Building a Solidarity Economy in the South (and Beyond)—Cooperation Jackson

NonProfit Quarterly

Following this, the program would require the actors to expand the scale and scope of their productive activities and base of operations, and be willing to forge links with allied forces participating in the broad range of strategic practices associated with the program.