Bill Summary
The Free Speech Fairness Act is a proposed amendment to the Internal Revenue Code of 1986 that would allow charitable organizations to make statements related to political campaigns as long as they are made in the normal course of carrying out their tax-exempt purpose. This amendment would ensure that such organizations are not penalized for voicing their opinions and participating in political discourse. It also specifies that the organization must only incur minimal expenses as a result of these statements. If passed, this legislation would go into effect for taxable years ending after the date of its enactment.
Possible Impacts
1) A charitable organization may now openly support or oppose a political candidate without fear of losing their tax-exempt status. This could affect people by potentially swaying their support for a candidate based on the endorsement of a well-known organization.
2) Donors to 501(c)(3) organizations may see an increase in political messaging from these organizations, as they are now allowed to make political statements as part of their regular activities. This could affect people by exposing them to more political messages and potentially influencing their beliefs or voting decisions.
3) The passing of this act could lead to an increase in political activity and involvement from charitable organizations, as they are no longer restricted in their ability to make political statements. This could affect people by changing the landscape of political campaigns and potentially giving certain organizations more influence and power in the political realm.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 330 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 330
To amend the Internal Revenue Code of 1986 to allow charitable
organizations to make statements relating to political campaigns if
such statements are made in the ordinary course of carrying out its tax
exempt purpose.
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IN THE SENATE OF THE UNITED STATES
February 5, 2019
Mr. Lankford introduced the following bill; which was read twice and
referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to allow charitable
organizations to make statements relating to political campaigns if
such statements are made in the ordinary course of carrying out its tax
exempt purpose.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as ``The Free Speech Fairness Act''.
SEC. 2. ALLOWING 501(C)(3) ORGANIZATION TO MAKE STATEMENTS RELATING TO
POLITICAL CAMPAIGN IN ORDINARY COURSE OF CARRYING OUT ITS
TAX EXEMPT PURPOSE.
(a) In General.--Section 501 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(s) Special Rule Relating to Political Campaign Statements of
Organization Described in Subsection (c)(3).--
``(1) In general.--For purposes of subsection (c)(3) and
sections 170(c)(2), 2055, 2106, 2522, and 4955, an organization
shall not fail to be treated as organized and operated
exclusively for a purpose described in subsection (c)(3), nor
shall it be deemed to have participated in, or intervened in
any political campaign on behalf of (or in opposition to) any
candidate for public office, solely because of the content of
any statement which--
``(A) is made in the ordinary course of the
organization's regular and customary activities in
carrying out its exempt purpose, and
``(B) results in the organization incurring not
more than de minimis incremental expenses.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
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