Illinois Nonprofits Violate Federal Ban, IRS Does Little to Enforce Rule

Despite a strict prohibition against electioneering, nearly 90 nonprofit churches, hospitals and schools in Illinois collectively donated more than $80,000 to local campaign groups over the past decade with little or no consequences, a Better Government Association analysis found.

While nonprofits, such as trade associations and unions, are allowed to engage in some campaigning, the Internal Revenue Service has a blanket prohibition on direct political activity by so-called 501(c)(3) nonprofit groups to ensure they focus on benefiting the public and fulfilling their educational, charitable or spiritual missions. For doing that, the government grants them valuable income, property and sales tax exemptions, and their donors’ contributions can be tax-deductible.