Johnson Amendment: What It Is and Where Things Stand

What the Johnson Amendment is:
The Johnson Amendment is a provision in the federal tax code, adopted in 1954, that prohibits 501(c)(3) organizations from endorsing or opposing political candidates or participating in campaign activity on behalf of a candidate. It applies to all 501(c)(3)s — charities, foundations, universities, and houses of worship. The rule is tied directly to the benefits of nonprofit status: organizations are tax-exempt and donations to them are tax-deductible. In exchange, nonprofits must remain nonpartisan in elections.

What nonprofits can and cannot do:
Nonprofits can advocate on policy issues, conduct nonpartisan voter education and voter registration, and engage in issue lobbying around legislation. They cannot:

• Endorse or oppose candidates
• Donate organizational funds to campaigns
• Use nonprofit communications — email, social media, publications — to advocate for a specific candidate

Why the sector cares:
The Johnson Amendment has historically maintained public trust in charities as nonpartisan institutions and prevented political donors from routing campaign contributions through nonprofits to receive tax deductions. Weakening or eliminating the rule would expose nonprofits to pressure to take partisan positions, jeopardizing relationships with donors, foundations, and government partners across the political spectrum.

Recent developments:
A federal court dismissed a case challenging the Johnson Amendment — the National Council of Nonprofits (NCN) issued a press statement “applauding the Court’s decision to upload nonprofit protections”. However, the Treasury Department and IRS announced plans to issue new guidance on how the law applies to religious organizations later this year, and the plaintiffs are expected to appeal. The broader climate of IRS scrutiny makes documenting Johnson Amendment compliance more important than ever.

Where things stand:
The Johnson Amendment remains in effect. Watch for IRS guidance on religious organizations when published. PANO will share updates as guidance is released.