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The Johnson Amendment is a provision in the U.S. tax code that prohibits all 501(c)(3) non-profit organizations from endorsing or opposing political candidates. 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.
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In recent years, many Republicans, including President Donald Trump, have sought to repeal it, arguing that it restricts the free speech rights of churches and other religious groups. Repeal has been criticized because churches have fewer reporting requirements than other non-profit organizations, and because it would effectively make political contributions tax-deductible.
Provisions
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.
History
The amendment was to a bill in the 83rd Congress, H.R. 8300, which was enacted into law as the Internal Revenue Code of 1954. The amendment was proposed by Senator Lyndon B. Johnson of Texas on July 2, 1954. (Johnson would later serve as President from 1963 to 1969.) The amendment was agreed to without any discussion or debate and included in Internal Revenue Code of 1954 (Aug. 16, 1954, ch. 736). It was considered uncontroversial at the time, and continued to be included in the Internal Revenue Code of 1986 enacted during the Ronald Reagan administration.
Repeal efforts
In recent years, the Alliance Defending Freedom has attempted to challenge the Johnson Amendment through the Pulpit Freedom Initiative, which urges Protestant ministers to violate the statute in protest. The ADF contends that the amendment violates First Amendment rights.
During his 2016 presidential campaign, Donald Trump called for the repeal of the amendment. On February 2, 2017, President Trump vowed at the National Prayer Breakfast to "totally destroy" the Johnson Amendment, White House Press Secretary Sean Spicer announced to the press that the President "committed to get rid of the Johnson Amendment", "allowing our representatives of faith to speak freely and without retribution", and Republican lawmakers introduced legislation that would allow all 501(c)(3) organizations to support political candidates, as long as any associated spending was minimal.
Repeal has been criticized for a number of reasons. One concern is that campaign contributions funneled through 501(c)(3) organizations would be tax-deductible for donors, and because churches are exempt from reporting requirements required of other 501(c)(3) organizations. This has the potential of creating a mechanism where political contributions could be made in violation of relevant campaign financing laws. Polls have shown that majorities of both the general public and of clergy oppose churches endorsing political candidates. The National Council of Nonprofits released a statement opposing the proposed repeal legislation. Independent Sector, a coalition of nonprofits, foundations, and corporations has also stated their opposition to the proposal to repeal the Johnson Amendment.