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

Nonprofit organizations are subject to special laws in the State of California. These laws restrict the use of nonprofit-owned funds for political activities. Generally, nonprofit organizations in California are prohibited from using funds to influence the outcome of any election or ballot measure. This includes donations made to political parties or candidates and the use of funds to advocate or oppose a specific political agenda. Nonprofit organizations may, however, use funds to support nonpartisan activities, such as voter registration drives, issue education campaigns, and get-out-the-vote activities. Nonprofits may also use funds to engage in limited lobbying activities, such as advocating for specific legislation, or advocating for social or economic policies. However, this type of activity must not be targeted to influence the outcome of an election or ballot measure. Organizations must also be aware of restrictions on the types of political activities that may be conducted with funds from a corporate donor. Corporate funding is considered to be more open to abuse, so California law requires additional safeguards for this type of funding. These restrictions include disclosure of the amount received, details of the activities funded, and the method of payment. Nonprofits must also maintain records of their political activities and make them available to the public upon request.

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