A UMNS Report
By Linda Green*
March 30, 2007

"Churches should take stands on appropriate issues, but it cannot be a substantial part of their ministry," said Jim Allen, general counsel of the United Methodist Council on Finance and Administration.

In the United States, candidates from all political parties often are seen in pulpits or at church functions delivering their messages or seeking endorsements.

However, after investigating numerous complaints of inappropriate political activity by nonprofits during the 2004 presidential campaign, the U.S. Internal Revenue Service has stepped up efforts to enforce laws that limit churches and charities from involvement in partisan campaigns.

In 2005, the IRS began warning churches and nonprofits that political campaign activism could endanger their tax-exempt status.

The tax agency unveiled its Political Activity Compliance Initiative to expedite investigation of claims of improper campaigning in churches. Thus, the IRS no longer is waiting to probe a church’s activities after it files an annual tax return or for the end of a tax year. A three-member committee reviews complaints and votes whether to investigate.

Tax Code enforcement

The restriction for churches engaging in political activism is not based on the First Amendment clause that is the basis for separation of church and state, but rather the result of a 1954 Tax Code provision championed by then-U.S. Sen. Lyndon Johnson as a way to stop political rivals from using nonprofits to campaign against him. The restriction has been amended to ban opposing political candidates as well.

In the early years, the IRS did not seriously enforce the provision but periodically issued guidelines for churches and political activity.

The 2006 IRS guide is designed to clearly define the role that churches, hospitals, universities and other entities can play in political matters. It states the rules are "not intended to restrict free expression on political matters" by organizational leaders who speak for themselves as long as they say that they are not speaking in behalf of their group.

The guide also makes clear that, under 501(c)(3) of the IRS code, violating such prohibitions "may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes" – issues of obvious importance to churches and other charitable organizations.

"Churches should take stands on appropriate issues, but it cannot be a substantial part of their ministry."
–Jim Allen, general counsel, United Methodist Council on Finance and Administration

"The mission of our church is to make disciples of Jesus Christ," said Allen. "We try to maximize the church’s resources to fulfill our mission, and one way we do that is by legally minimizing our income tax burden."

What’s allowed, what’s not

Allen said clergy should avoid political activism from the pulpit. "My first piece of advice would be to not invite candidates to speak in the pulpit, if the church is in the United States," he said.

Any statement interpreted as either endorsing or opposing a candidate is against IRS guidelines, regardless of whether a name is mentioned. For instance, a pastor declaring that "all good Christians should go to the polls and vote for the Christian candidate" would be improper if one candidate is known to be a Christian and the other is not, he said.

The prohibition extends beyond the pulpit into other church-sponsored events. "It does not matter if the activity is in the pulpit, fellowship hall, the vestibule or newsletter," he said. "It also does not matter whether the person doing or permitting the endorsement on behalf of the church is the pastor or a member."

Churches and tax-exempt organizations can hold voter education activities, including public forums and publishing voter education guides, if conducted in a nonpartisan manner. They also may encourage people to register to vote in a nonpartisan manner.

The guide cautions churches and nonprofits about their use of the World Wide Web as well. "If an organization posts something on its Web site that favors or opposes a candidate for public office, the organization will be treated the same as if it distributed printed material, oral statements or broadcasts that favored or opposed a candidate," the guide states.

The same is true for any links listed on a church Web site, even if the church has no control over the content of the linked site. A church is responsible for the consequences of establishing and maintaining that link and may reduce its risk by monitoring the linked content and adjusting the links accordingly.

The church’s stance

The United Methodist Church’s stance on political activism can be found in its Social Principles and its Book of Resolutions.

The Social Principles speak to human issues in the contemporary world from a political and theological foundation. Its section called "The Political Community" says the church must hold governments responsible for protecting the rights of people to fair and free elections. It also says the church should continually "exert a strong ethical influence upon the state, supporting policies and programs deemed to be just and opposing policies and program that are unjust."

The Book of Resolutions addresses a wide range of social issues and concerns and says churches have the right and duty to speak and act corporately on matters of pubic policy involving basic moral or ethical issues and questions.

In the wake of the divisive 2004 elections, many Christian leaders expressed that the church must guard its autonomy in political matters so as not to distract from its primary mission of proclaiming Jesus Christ to the world, making disciples and serving as an agent of love, peace and forgiveness.

Allen advises churches to understand clearly the IRS guidelines and even to seek legal counsel when faced with issues that could violate those guidelines.

Also, while no United Methodist church has had its tax-exempt status revoked, the pastor and elected local church leadership should respond quickly to any complaint of inappropriate political activism.

Allen acknowledges that it is a difficult tightrope to walk, but an important one – both for the purposes of following U.S. law and staying true to the church’s core mission.

"Churches should take stands on appropriate issues, but that should be an insubstantial part of their ministry," he said.

*Green is a United Methodist News Service news writer based in Nashville, Tenn.

News media contact: Linda Green, (615) 742-5470 or newsdesk@umcom.org.

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