Tax Deductible Politics

National Prayer Breakfast Announcement:  Free the Churches to do political advocacy

Repeal of the Johnson Amendment may make politics tax deductible.

Repeal of the Johnson Amendment may be like repeal of broadcast media's "Fairness Doctrine."  It will have important and long lasting implications.

A top priority for Christian conservatives

The Johnson Amendment was a 1954 amendment to the Internal Revenue Code relating to the activities of 501(C)3 organizations--those to which contributions made are tax deductible to the donor.  The amendment specified that religious organizations enjoying 501(C)3 status are prohibited from advocacy of candidates or direct participation in politics.  The law was intended to prohibit some conservative churches, who openly supported a Senatorial opponent of Lyndon Johnson, from doing so without giving up their non-profit tax deductible tax status.  Now most churches draw a line between religion and politics.  

501(C)3 organizations are those readers understand to be "charitable", i.e. churches, the Red Cross, Salvation Army, food banks, and nonprofit colleges.   This is distinguished from somewhat similar organizations that are set up in part to do good civic activities, but whose activities benefit the members and the community generally but which are not set up as "charities",  i.e. Chambers of Commerce and Rotary Clubs.  It also excludes organizations set up to do direct lobbying and political advocacy that might be aligned with nonprofit groups, i.e. Planned Parenthood Advocates of Oregon, which is a 501(C)4 organization.  Gifts to a 501(C)4 organization are not tax deductible.

Q & A on the Repeal

The distinction between Planned Parenthood, a 501(C)3 charity which provides nonprofit health services relating to reproduction, and Planned Parenthood Advocates of Oregon, a 501(C)4 organization which endorses candidates may seem small but the distinction is carefully maintained by both organizations.  The first does charitable work of nonprofit healthcare and sex education, and contributions to it are tax deductible, the other does political advocacy regarding health care and sex,  and contributions to it are not tax deductible.   They have separate boards, separate missions, and separate tax treatment.

They sound somewhat similar because they are somewhat similar, but distinctions between education and political advocacy are carefully maintained because the laws require it--for now at least.

Political contributions to a candidate are not tax deductible. 

Readers who are new at this will find it baffling; readers who are experienced at giving to various groups know the ropes and the tax laws.  The ropes may be changing.   

Donald Trump, in fulfillment of a promise to the evangelical churches who supported him, has promised to repeal the Johnson Amendment.   It would allow churches to become much more overtly political.  Trump's eye is on Christian conservatives some of whose ministers chaff under the prohibition against open advocacy of candidates.  The problem--or opportunity--is that the repeal cannot easily be written so that only conservative evangelical churches who support Trump are free to become political.  The tax code does not distinguish between denominations.  Indeed, all religious organizations are treated alike, and all charities play by similar tax rules regarding politics.   A 501(C)3 organization can do public communication but not endorse candidates, just as with churches.

Repeal of the Johnson Amendment can mean that a great deal of political advocacy becomes tax deductible.  A minister who says that women should submit to the leadership of her husband is currently free to do so and free to publish tracts advocating this.  Currently the minister could add that all female candidates are an abomination onto the Lord.  After repeal of the Johnson Amendment the minister can clarify that this means members should not vote for Nancy Pelosi.  

Of course, it will also mean that liberal churches can advocate impeaching Trump.

Click Here for an article from a Church/Tax website

The distinction between a public college having a "legislative affairs information officer" at the state capitol and doing open political campaign advocacy may end.   It may--indeed almost certainly will--politicize currently "non political" organizations.  The distinction between Planned Parenthood and Planned Parenthood Advocates will likely be lost.  Less controversial organizations will also feel a pull toward politics.  Elections for boards of Trustees may gain a political/partisan tone.

There may become a Democratic alcohol treatment nonprofit program and a Republican nonprofit alcohol treatment program, becoming rivals for grant or donation money.

Social Glue.   Nonprofit organisations have been part of the social glue that has held communities and the nation together.  People of various politics have worked together on programs of non-controversial pubic benefit--build a playground structure at a park, for example.  Churches have both divided and united communities, but generally the nonpolitical charitable purposes of 501(C)3 organizations have united them.   Churches and nonprofits may become more political under repeal.

Click Here for the article

This will accelerate the national fracturing of unifying institutions, already seen in silos of media and politics and world view.  Currently Rotary Clubs are glue and food banks are glue.  They build unity and social capital.  

Repeal of the Johnson Amendment may have the same effect as did ending the "Fairness Doctrine" on broadcast media.   News and talk radio became partisan.  The "consensus reality" of the days of Walter Cronkite are long gone. The notion of "fair" and "real facts is diminished in favor of my news vs. the fake news received by others.

This is having far reaching implications.  It made Rush Limbaugh possible, and he is undeniably popular with many people.  He has a point of view and he shares it.  It is interesting and it is free speech, but it isn't unifying.  The current media landscape allows contradictory facts to be the basis for democratic decision-making.  Currently Rotary clubs and food banks are non-political, but they need not be.  There could be a Republican Rotary Club and a Democratic Rotary Club meeting weekly in the same town.   It is a choice Americans will make.  Which do we value more:  more freedom or more social glue.

Start your own church. Click here for a simple kit.

Evangelical church national leaders appear to perceive repeal as a benefit.  They want  more freedom to advocate politics, their politics.  Others will choose to do the same.

If the Johnson Amendment is repealed it will be a new political landscape for readers of this blog.

Some readers will choose simply to work with the new reality, and establish on their own, or in concert with like minded people, small independent church institutions to receive charitable contributions which are then used to share a religious message of divine guidance that a preferred candidate would be best for America and his or her opponent is the spawn of Satan.   The Church could aggregate donations, both charitable and personal, in a kind of donor-advised fund.  Some of the church's good work would be funding the Red Cross and food banks.  Some would be funding the campaigns of political leaders who spread the religious truth as perceived by the donor.  All donations could be run through the church:  Tax deductible politics, a pretty good deal for the politically active reader.