## Facts

- An educational membership organization is exempt from federal income tax under I.R.C. § 501(c)(3).
- One of its programs monitors and reports on governmental activities of interest to its members.
- During congressional election campaigns, the organization proposes a series of public forums in multiple congressional districts featuring candidates for the U.S. House of Representatives.
- All legally qualified candidates in each district are invited to participate.
- Each forum covers a broad range of issues, including but not limited to issues of interest to the organization’s members.
- Questions are prepared and asked by a nonpartisan, independent panel drawn from media, educational organizations, community leaders, and other interested persons.
- Each candidate is given an equal opportunity to present views on each issue discussed.
- A moderator selected by the organization enforces ground rules and does not otherwise participate.
- At the beginning and end of each forum, the moderator states that candidate views are not the organization’s views and that sponsorship is not intended as an endorsement of any candidate.

## Issues

1. Whether conducting candidate forums in the described manner constitutes prohibited participation or intervention in a political campaign under I.R.C. § 501(c)(3).
2. What features of a candidate forum demonstrate a permissible educational activity rather than impermissible campaign activity for a § 501(c)(3) organization.

## Decision

- The IRS concluded that conducting the described public forums does not constitute participation or intervention in a political campaign within the meaning of I.R.C. § 501(c)(3).
- The ruling amplified prior IRS guidance addressing candidate appearances and voter education activities by § 501(c)(3) organizations.

## Legal Principles

- A § 501(c)(3) organization must not participate or intervene (directly or indirectly, including by publishing statements) in any political campaign on behalf of, or in opposition to, any candidate for public office.
- An organization is not operated exclusively for exempt purposes if it is an “action” organization that participates or intervenes in a political campaign.
- Candidate forums may qualify as educational activity when structured to avoid bias and to provide a neutral platform, including:
  - Inviting all legally qualified candidates.
  - Providing equal opportunity for candidates to present their views.
  - Using a nonpartisan, independent panel to prepare and ask questions.
  - Limiting the moderator to enforcing ground rules.
  - Covering a broad range of issues rather than framing content to advance or attack a candidate.
  - Using clear statements that the forum does not reflect organizational views and is not an endorsement.
- Disclaimers support nonpartisanship but are evaluated together with the forum’s overall structure and conduct.

## Conclusion

A § 501(c)(3) organization may sponsor public candidate forums without engaging in prohibited political campaign intervention when the forums are conducted on a genuinely nonpartisan basis, provide equal access and opportunity to all legally qualified candidates, employ neutral questioning and moderation, address a broad range of issues, and clearly state that sponsorship does not constitute endorsement.


Rev. Rul. 86-95, 1986-2 C.B. 73 (1986)