Parish prohibitions on political activity

The upcoming general election promises to be very hard fought in this state. If past elections are any indication, it appears that many individuals and groups will be trying to involve churches in their political campaigns, even some from the best of intentions.

The law of the United States, as provided in the Internal Revenue Code, is that churches and other non-profit organizations cannot take any part in the political campaigns of candidates or do or say anything that couldbe construed as statements or hints favoring one candidate over another. This is an absolute prohibition. While we can take some action with regard to legislative issues, we cannot take any stance with regard to candidates or their election to office. This may include statements which implicitly convey one's stance on a candidate; an example might be when a cleric says that one should vote for the candidate who favors a particular important issue when the candidates in an election have taken opposite stances on this issue.

PARISHES AND POLITICAL ACTIVITY
Pursuant to a group ruling issued annually by the Internal Revenue Service ("IRS") Catholic churches are exempt from taxation under §501(c)(3) of the Internal Revenue Code. Although this designation relieves parishes from the payment of certain taxes and allows parishes to receive tax-deductible donations, it also imposes certain restrictions on parishes relating to political activity. Simply stated, ignoring these restrictions can seriously jeopardize a parish's tax-exempt status and the very substantial tax advantages that go with it. Specifically, parishes and other charitable, tax-exempt organizations may not do either of the following:

✱ Attempt to influence legislation (i.e. "lobbying") to a degree that such activities would constitute a substantial part of its activities.

✱ Participate or intervene, whether directly or indirectly, in any political campaign.

LOBBYING
Lobbying may be defined as actions directed at affecting the outcome of legislation. Legislation encompasses, among other things, bills before a state general assembly or the United States Congress, state or federal constitutional amendments, ballot measures, local/municipal legislation, bond measures, and public referenda or initiatives. As stated above, a parish may engage in a limited amount oflobbying without jeopardizing its tax -exempt status. The key for any parish is to ensure that such activity is no more than an insubstantial part of its overall activities. Although there is no clear definition of "insubstantial" relative to lobbying, some cases have indicated that line of demarcation is anywhere between 5% and 15% of a parish's
overall activity. Given this ambiguity it is essential to err on the side of extreme caution.

POLITICAL CAMPAIGNS
Unlike the restrictions on lobbying which allow parishes to engage in some, albeit limited amount, of lobbying, the Internal Revenue Code completely prohibits. parishes from participating to any degree in political campaigns on behalf of or in opposition to any candidate for elective public office. In practical terms, this ban is perhaps best understood through the use of specific topics on which the IRS has issued opinions. The following is not an exhaustive list, but touches on the most commonly encountered scenarios.

A. Prohibited Activities
1. Contributions or in-kind support by parishes made to political campaign funds or candidates. .
2.Public statements of position, however communicated, made in support of or in opposition to any candidate for public office, any political party, or any political action committee.
3. Soliciting contributions for or on behalf of a particular candidate.
4. Soliciting signatures for a petition enabling a candidate to appear on the ballot.
5. Loans to or loan guarantees for any candidate, political party, or political action committee.
6. Distribution of campaign literature for or granting permission to candidates or those advocating on behalf of a candidate to distribute campaign literature on parish property, including parish parking lots. Campaign literature would include, among other things, any voter scorecards, endorsements from outside organizations, fliers, or other materials that are biased toward a particular candidate.
7. Distribution of voter guides; most voters guides are subtly biased since they often focus on only a few issues. Only voter guides from the USCCB, the Ohio Catholic Conference or the Diocesan Social Action Office may be used.
8. Rating candidates.
9. Renting space to a candidate or political party if any of the following are true:
✱ your parish doesn't routinely rent such space or if it made available only for affiliated Catholic users;
✱ your parish charges the candidate or party less than market rate;
✱ your parish allows a candidate or party to use the space for free;
✱ your parish rents the space to a party or candidate under different terms or conditions than it does for other renters/users;
✱ your parish rents space in a manner that demonstrates
preference towards or against particular candidates or parties (e.g. your parish is only willing to rent to one candidate or -party);
✱ your parish promotes, advertises, or provides any services in connection with a candidate or party event on its property.

Bro. Patrick Shea, General Counsel for the Diocese, can be reached at (216) 696-6525 or 1-800-869-6525, ext. 4370. Kevin Burke, Associate General Counsel for the Diocese, can be reached at (216) 696-6525 or 1-800-869-6525ext. 4360.

For additional information regarding this topic we encourage you to read the Political Activity
Guidelines for Catholic Organizations authored by the Office of the General Counsel for the
United States Conference of Catholic Bishops. Copies of this document can be found on the
website ofthe USCCB by using the following link: http://www.usccb.org/ogc/guidelines.shtml.
Additionally, copies may be requested from the Diocese Legal Office.