Johnson Amendment

The Johnson Amendment is a provision in the U.S. tax code, since 1954, that prohibits all 501(c)(3) non-profit organizations from endorsing or opposing political candidates. Section 501(c)(3) organizations are the most common type of nonprofit organization in the United States, ranging from charitable foundations to universities and churches. The amendment is named for then-Senator Lyndon B. Johnson of Texas, who introduced it in a preliminary draft of the law in July 1954.

In the 2000s, many Republicans, including President Donald Trump, have sought to repeal the provision, arguing that it restricts the free speech rights of churches and other religious groups. These efforts have been criticized because churches have fewer reporting requirements than other non-profit organizations, and because it would effectively make political contributions tax-deductible. On May 4, 2017, President Donald Trump signed an executive order "to defend the freedom of religion and speech" for the purpose of easing the Johnson Amendment's restrictions.

Paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code describes certain organizations that may be exempt from U.S. Federal income tax. The description of those organizations is worded (in part) as follows:

The Johnson amendment is the bolded portion of this provision beginning with the words "and which does not participate in, or intervene in [ . . . ]." The amendment affects nonprofit organizations with 501(c)(3) tax exemptions, which are subject to absolute prohibitions on engaging in political activities and risk loss of tax-exempt status if violated.

Specifically, they are prohibited from conducting political campaign activities to intervene in elections to public office. The Johnson Amendment applies to any 501(c)(3) organization, not just religious 501(c)(3) organizations.

The benefit of 501(c)(3) status is that, in addition to the organization itself being exempt from taxes, donors may also take a tax deduction for their contributions to the organization.

According to the Internal Revenue Service, contributions to political campaign funds, or public statements of position in favor of or in opposition to any candidate for public office, are disallowed. However, certain voter education activities as well as voter registration and get-out-the-vote drives, if conducted in a non-partisan manner, are not prohibited.

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