Discussing the Bloomberg report, the Nonprofit Law Prof Blog takes a look at the newly introduced bill H.R.6195. The proposed bill would allow 501(c)(3) organizations to make political statements. Some fear the language of this bill is far too broad, and would do nothing but create additional negative issues with enforcement.

Potential Change to Ban Created by Johnson Amendment

Bloomberg reports that a new bill (H.R. 6195) has been introduced that would allow 501(c)(3) organizations to make statements about political campaigns, if the statements “are made in the ordinary course of carrying out its tax-exempt purpose.” Many believe this exemption is overly broad, creating issues with enforcement. Ms. Kinglsey, a Washington attorney, stated that “you’re creating a loophole for people to drive a truck through . . . .” A particular concern related to broadness comes with the lack of a definition of what exactly is an organization’s “regular and customary activities.” Under the bill, a 501(c)(3) organization could not hold a specific fundraiser for a candidate, but they could encourage their constituents to donate to political candidates.
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