Can We Share That?

Working in coalition is one of the nonprofit sector's greatest strengths and can be especially powerful during election season. With the midterm elections around the corner, now is a good time for organizations to revisit their plans for election-related advocacy, including voter engagement, candidate education, and issue advocacy. A 501(c)(3) can collaborate with a 501(c)(4) and other nonprofits to advance common goals, pool resources, and build momentum. The key is knowing where collaboration ends and organizational boundaries begin, so allocate resources fairly, document cost-sharing agreements, and make sure each organization operates within the rules that apply to it.

In this episode, we'll explore best practices for 501(c)(3)s collaborating and sharing resources with organizations operating under different tax rules during election season, including how to keep coalition work effective, compliant, and nonpartisan.

Attorneys for this Episode:

Maggie Ellinger-Locke

Sarah Efthymiou

Monika Graham

501(c)(3)s Must Remain Nonpartisan

Internal Revenue Code: 501(c)(3) organizations are prohibited from directly or indirectly participating in partisan political activity on behalf of, or in opposition to, any candidate for public office.

The Facts & Circumstances Analysis

The IRS uses a "facts and circumstances" analysis to determine whether a 501(c)(3)'s communication about an issue is genuinely nonpartisan or is a veiled attempt to influence the outcome of an election. Factors include whether the communication mentions or evaluates candidates, references a candidate or election, occurs close to an election, or addresses an issue that distinguishes the candidates. The IRS also considers the broader context, including the timing, targeted audience, relationship to candidates' or political parties' communications, and whether the organization has a history of discussing the issue outside election periods. No single factor is determinative for the IRS looks at the full picture.

What are some best practices for engaging in coalition work during election season?

Build out the coalition's structure in advance.