Updates and Information
Congress again trying to repeal Johnson Amendment
12-03-2018 Nonprofits, Public PolicyNonProfit Quarterly reports that Congress is once again considering repeal of the Johnson Amendment.
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The Johnson Amendment was introduced by |
The Johnson Amendment was introduced by then Senator Lyndon B. Johnson in 1954, and is important because it established the prohibition on 'political intervention' by charitable organizations. This rule has been critical in keeping charities largely free from politics.
However, many charities are concerned that repealing the Johnson Amendment will open the floodgates to allow wealthy individuals to pump millions of dollars through charities for partisan purposes. This will also have the affect of allowing wealthy donors to get tax breaks for political donations. Since 501(c)(3) charitable organizations have less stringent reporting requirements than political action committees (527 organizations under the IRC), it would also allow wealthy individuals to essentially disguise their political contributions as charitable contributions.

