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

In South Dakota, nonprofit funds cannot be used for any political activities. Nonprofits are organized for a charitable purpose, and their funds are intended to be used to further that cause. It is illegal for nonprofit organizations to use their funds to support or oppose political candidates or to promote or oppose issues that appear on the ballot. Nonprofits are also prohibited from contributing funds directly or indirectly to political campaigns, including donations to political parties. Additionally, nonprofit organizations cannot endorse candidates or engage in political lobbying. If a nonprofit board does decide to participate in political activities, it is important to remember that all activities must be non-partisan and carried out in a way that does not appear to support any political candidate or party. To make sure all activities are in compliance with South Dakota’s nonprofit laws, organizations should always consult an attorney before engaging in any political activities. Furthermore, organizations should also keep accurate records of all campaign contributions and any other political spending, and ensure that all activities remain non-partisan. Doing so will help organizations ensure their funds are not used for political activities and that they remain in compliance with the law.

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