What are the restrictions on the use of nonprofit funds for political activities?

In California, nonprofit organizations are subject to certain restrictions in regards to political activities and the use of funds. Generally speaking, nonprofit funds may not be used directly to support political lobbying, or to support candidates or campaigns. However, certain activities such as voter registration, education, and polling may be conducted without violating these restrictions. Additionally, nonprofit organizations may engage in nonpartisan activity that expresses the organization’s views on public policy issues, as long as the activity does not support or oppose any particular candidate or political party. Nonprofit organizations may not contribute money directly to political campaigns, but they may contribute to a Political Action Committee (PAC). PACs are 501(c)(4) organizations, which are not regulated by the same rules as 501(c)(3)s and can legally contribute to political campaigns. Unrelated business income may be used to support political activities such as voter registration and education, or to support a political campaign. However, this income must be kept separate from tax-exempt activity, as it may be subject to taxation. Overall, nonprofit organizations should be aware of the restrictions on the use of funds for political activities and exercise caution when engaging in such activities. They should also consult with an attorney to ensure they are in compliance with applicable laws.

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What are the restrictions on the use of nonprofit funds for political activities?

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