Religion, Politics, and the Tax Code

The U. S. Tax Code allows donor tax deductions to religious organizations, but the deduction comes with conditions that require the ministries to limit political activities. The best known condition is the rule against involvement in political campaigns.

Voter Education and Get-Out-the-Vote

The IRS prohibits any voter education and registration effort that specifically favors one candidate or party.

Individual Activity by Leaders

As individuals, church leaders can express their political opinions; however, the tax code prohibits them from making political comments in publications and at functions that their ministry sponsors.

Official Candidate Appearances

When a ministry invites a candidate to speak, the IRS determines if the event is allowed within the rules of the tax code by asking:

  • Did the organization provide the same opportunity to participate to all candidates for the same position?
  • Did the organization indicate its support for or opposition to any of the candidates in any way?
  • Did any political fundraising occur?

When it invites several candidates for the same office to speak at a public event, the IRS asks other questions:

  • Did questions for the candidates come from an unbiased panel?
  • Did the discussion cover a broad range of issues of interest to the public?
  • Did all candidates have an equal opportunity to present their views?
  • Were candidates asked to agree or disagree with ministry-specific positions or statements?
  • Did a moderator comment on the questions or imply approval or disapproval of any candidate?

Unofficial Candidate Appearances

Ministries may invite political candidates to speak in certain situations: i.e., when those who hold a public office are experts in a non-political field or have led notable military, legal, or public service careers. A candidate also may personally choose to attend a ministry event open to the public. If the ministry introduces the candidate or asks the candidate to speak, the IRS determines if the activity fits the rules by asking questions similar to those mentioned previously.

Public Policy Positions

IRS regulations permit religious organizations to take positions on public policy issues that divide candidates. However, they must avoid taking a position that favors or opposes a candidate or party. A church or ministry can violate the regulations simply by showing a picture of the candidate, referring to a political party, or using facts unique to a candidate's platform or biography.

Business Activity

An organization may not sell or rent mailing lists, lease office space, or accept paid political advertising in a way that the tax code prohibits.

Websites

When a ministry posts something on a website that favors or opposes a candidate, the IRS considers it the same as other political statements a religious organization makes. When a church or ministry allows a link to another website, the IRS may hold it responsible for political statements others make on the linked site.

July 22, 2021
Thousands in Relief Funding Available to Ministries Through the Employee Retention Credit
Thousands in Relief Funding Available to Ministries Through the Employee Retention Credit

Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.

Tags: ERC, payroll, tax credit
February 25, 2021
Catalytic Converter Theft on the Rise: Protect Ministry Vehicles
Catalytic Converter Theft on the Rise: Protect Ministry Vehicles

Did you know that the precious metal Rhodium is more than 10 times more valuable than gold?  It has increased from $650 an ounce in 2015 to $22,000 an ounce in 2021.

Tags: protect, theft, vehicle
November 23, 2020
COVID-19 and the Christmas Season
COVID-19 and the Christmas Season

Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.

Tags: COVID-19, health, health safety, protect, coronavirus, Christmas, risk management
October 28, 2020
Guidance for Ministries About Boy Scouts' Bankruptcy
Guidance for Ministries About Boy Scouts' Bankruptcy

A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.

Tags: coverage, protect, liability, damages, youth
October 1, 2020
Applying for PPP Loan Forgiveness
Applying for PPP Loan Forgiveness

Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.

July 21, 2020
Tips for Beating the Summer Heat
Tips for Beating the Summer Heat

Not only can summer heat be uncomfortable, but it can also pose a threat to your health. The heat can be especially dangerous for the elderly and for infants. Regardless of your age, don’t let the summer heat get the best of you!

Tags: damages, insurance, claims
March 31, 2020
CARES Act: Churches Need to Apply Now
UPDATED: CARES Act: Churches Need to Apply Now

Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23. 

March 6, 2020
Coronavirus and Your Ministry: Tips for Prevention
Coronavirus and Your Ministry: Tips for Prevention

As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.

January 29, 2020
Hosting a Game Day Bash? Brush Up on Copyright Basics
Hosting a Game Day Bash? Brush Up on Copyright Basics

The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.

Are You Covered If You're Injured Overseas?
Are You Covered If You're Injured Overseas?

Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.

Tags: missions, insurance
IRS Announces More Church Audits Regarding ACA Compliance
IRS Announces More Church Audits Regarding ACA Compliance

Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.

Tags: ACA, IRS
July 3, 2019
Celebrate Safely This Independence Day
Celebrate Safely This Independence Day

July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.

Tags: firework safety
June 28, 2019
Insurance is one of those things we forget about until we need it
Insurance is one of those things we forget about until we need it

National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.

Tags: damages, insurance, claims
May 5, 2019
May 5-11 is Hurricane Preparedness Week
May 5-11 is Hurricane Preparedness Week

The National Weather Service (NWS) has designated May 5-11, 2019, as National Hurricane Preparedness Week. Is your ministry prepared?

Tags: damages, protect, weather emergency
April 9, 2019
Vehicle Registration Guidelines for Ministries
Vehicle Registration Guidelines for Ministries

Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.

Tags: vehicle safety, auto insurance, liability
September 21, 2018
Measles Reported in 21 States, Including North Carolina
Measles Reported in 21 States, Including North Carolina

The Centers for Disease Control says 107 cases of measles have been reported in 21 states, including North Carolina, since January 1.

Tags: damages, insurance, claims
June 1, 2018
June Is National Safety Month - Week 1: Emergency Preparedness
June Is National Safety Month - Week 1: Emergency Preparedness

The National Safety Council has designated June as National Safety Month, so we want to make sure your ministry is doing everything it can to protect its people, property, and programs. Each week in June, we’ll tackle a different topic. Up this week: Emergency Preparedness.

Tags: disaster prep, fire prevention, lightning, medical emergency, medical team, storms, weather emergency
April 18, 2018
Collect Online Donations? This New Scam Targets You
Collect Online Donations? This New Scam Targets You

There’s a new scam in town, and ministries and other organizations collecting donations are the primary target. If your ministry collects tithes or donations, you could be targeted by scammers practicing donation overpayment fraud.

Tags: donations, finances, fraud, cyber security
February 21, 2018
Remembering Billy Graham
Remembering Billy Graham

Beloved evangelist Billy Graham was called to his heavenly home on Wednesday, February 21, 2018, at the age of 99.

Tags: Billy Graham
February 9, 2018
Flu Is Widespread: Protect Your Congregation
Flu Is Widespread: Protect Your Congregation

For the first time in its 13 years of influenza monitoring, the U.S. Centers for Disease Control and Prevention is reporting that every state in the continental U.S. is seeing widespread flu activity. Get tips on how to keep your congregation healthy this flu season.

Tags: health safety, risk, protect, health, flu