05/04/2017

Trump Relaxes 501(c)(3) Political Activity Rules

The executive order attempts to neutralize the Johnson Amendment

President Donald Trump signed an executive order this morning that eases restrictions on political activity by churches, charities and other 501(c)(3) groups. Marking the National Day of Prayer, Trump’s executive order attempts to neutralize the Johnson Amendment, named for Lyndon B. Johnson who introduced it in the Senate in 1954. The measure prevents churches and charitable organizations from directly or indirectly participating in any political campaign on behalf of, or in opposition to, any candidate.

While Trump’s executive action does not change current law, administration officials said Trump will direct the Internal Revenue Service (IRS) to exercise “maximum enforcement discretion” and not investigate religious leaders and other nonprofit groups that express political views and endorse or oppose political candidates during campaigns.

The American Society of Association Executives (ASAE) is in favor of keeping the Johnson Amendment intact.

“Public trust is critical to the credibility and effectiveness of donor-based nonprofits,” said ASAE President and CEO John Graham, FASAE, CAE. “While ASAE is fully supportive and will vigorously defend the First Amendment rights of nonprofit groups to advocate on public policy issues that impact their missions, the Johnson Amendment exists to ensure nonpartisanship in organizations that receive tax-deductible contributions. Opening nonprofits up to partisan politics would undermine their purpose and ability to effectively address community needs.”

The president’s executive order also offers a promise to “protect and vigorously promote religious liberty” but does not include controversial language from an earlier draft order that would have allowed individuals and businesses to discriminate against the LGBTQ community.

That original draft order on religious freedom was leaked to the press back in February and would have established broad exemptions for people and businesses to claim religious objections under virtually any circumstance. Critics of that original draft order, which included ASAE, said the order effectively sanctioned discrimination against the LGBTQ community. The White House shelved the order under protest, and it was reported to be under revision again this week for possible inclusion in the order that Trump signed today.

This article was provided to OSAE by The Power of A.