## Facts

- A nonprofit corporation recognized as exempt under I.R.C. § 501(c)(3) operated a noncommercial broadcasting station airing religious, educational, and public-interest programming.
- Federal communications law required the station to make reasonable amounts of airtime available to legally qualified candidates for elective public office.
- The station provided candidate airtime without charge so candidates could present their views and urge their election.
- The station offered equal opportunities to all legally qualified candidates for the same office.
- Before and after each candidate broadcast, the station aired a neutral disclaimer stating: the views were the candidate’s; the station endorsed no candidate or viewpoint; the broadcast was a public service to inform the electorate; and equal opportunities would be provided to all such candidates.
- The station complied with applicable equal-opportunity requirements in providing this airtime.

## Issues

1. Whether a § 501(c)(3) noncommercial broadcaster that provides free, equal airtime to legally qualified candidates to satisfy federal communications requirements, with disclaimers and without endorsement, “participate[s] in” or “intervene[s]” in a political campaign within the meaning of I.R.C. § 501(c)(3).

## Decision

- The IRS concluded the organization did not participate or intervene in a political campaign within the meaning of § 501(c)(3) by providing the described candidate airtime.
- The organization’s exempt status was not jeopardized on these facts.

## Legal Principles

- An organization described in § 501(c)(3) must not participate or intervene, directly or indirectly, in any political campaign on behalf of or in opposition to any candidate for public office.
- Under Treasury regulations, an organization is not operated exclusively for exempt purposes if it is an “action organization,” including one that participates or intervenes in political campaigns (including through statements made on behalf of or in opposition to candidates).
- Providing candidate access on an equal basis, without organizational endorsement, and with clear disclaimers attributing statements to the candidates, is treated as non-intervention where the broadcaster is complying with federal communications requirements.
- Candidate airtime can be consistent with an educational or informational function when presented neutrally and without favoring any candidate.

## Conclusion

A § 501(c)(3) noncommercial broadcaster that, to comply with federal communications law, provides reasonable amounts of free airtime equally to all legally qualified candidates for the same office, brackets the broadcasts with neutral disclaimers, and does not endorse any candidate or viewpoint is not considered to have engaged in prohibited political campaign intervention under § 501(c)(3).


Rev. Rul. 74-574, 1974-2 C.B. 161 (1974)