Nonprofits PAC Endorses Candidates

August 14, 2012 - In a proclaimed "breakthrough," CForward's PAC for Nonprofits has announced the endorsement of eight candidates for the 2012 elections.  

According to Robert Egger, President of CForward,  a nonpartisan, 501(c)4 advocacy organization, these candidates were chosen based on their understanding that "nonprofits are major employers in every community and contribute millions in payroll taxes." Egger also states that the PAC for Nonprofits "promotes candidates who demonstrate the kind of vision required to help economies grow and thrive."

CForward’s announcement prompts the question - what can nonprofits do around election activities? 

The Alliance for Justice outlines the various activities a nonprofit’s tax exemption status will allow, but for this conversation, it is important to point out that 501(c)3’s are strictly forbidden to form a PAC. Doing so, according to the IRS, will lead to revocation of tax exemption status.

However, nonprofits whose officers, directors and key employees want to explore setting up a "non-connected PAC" should be aware that it may be done only under strict and certain circumstances -  the PAC must be completely separate from any sponsoring corporation or union.

501(c)4s, on the other hand, are freer in their overall electoral activities, including the formation of PACs.  To learn more, read The Connection, published by the Alliance for Justice.