On Tuesday, November 26, the Obama administration made a move aimed at restricting tax-exempt nonprofit organizations’ political activity. The new rules proposed by the Internal Revenue Service (IRS) and the U.S. Treasury Department, clarify how the IRS defines political activity as well as what amount nonprofits are allowed to spend on it.
According to a report from the Center for Responsive Politics, trade organizations and nonprofit groups organized under section 501(c)4 of the tax code reported spending $309 million in the 2012 election on items such as advertisements, forums and voter drives. Spending in the 2006 election was less than $5.2 million.
According to a Treasury press release, the proposed changes would impact political activities related to communications, grants and contributions, as well as activities closely related to elections or candidates. For more, read the full release here.