With the 2014 election year heating up, we can expect to see and hear more campaigning, advertising and debate in the coming months. Political issues and candidates can, and do, create passionate and intense debate in our community as part of the democratic process.

However, charitable, religious and educational and other tax-exempt organizations must remember to comply with the rules and regulations related to political activity.

Because the Attorney General’s Office oversees such organizations, it’s important to remind them to steer clear of political campaigning. Tax-exempt charitable organizations should know that they do not share the same legal rights to participate in political activity as individuals and other corporations.

Tax-exempt institutions under Internal Revenue Code Section 501(c)(3) — which include churches, private schools, universities and humanitarian organizations — pay no federal or Hawaii income taxes and must operate exclusively for their tax-exempt purposes.

Tax law specifically bars such organizations from participating directly or indirectly in political campaigns or advocating for specific candidates. They are also prohibited from contributing to political campaigns and specific candidates, and with limited exceptions from substantial lobbying or advocating for or against the passage of a bill.

If a tax-exempt organization violates these prohibitions, it risks revocation of its tax-exempt status.

Thus, charitable and religious organizations cannot directly or indirectly advocate on behalf of candidates, publish or distribute written materials for candidates or issues, or make contributions to political campaign funds.

Use of the exempt charities’ email, social media, phone or bulletin boards may be considered political intervention that violates the law.

Charitable and religious organizations can legally conduct educational meetings, distribute educational materials and otherwise consider public policy issues in an educational and objective manner without jeopardizing their tax-exempt status. There is a fine line between educational activities and partisan political campaign activity, so it is important for tax-exempt organizations to avoid crossing the line.

The law does not restrict the free expression of opinions by individuals or leaders who are associated with exempt charities. Statements advocating for the election or defeat of a candidate by an exempt organization’s leadership, how- ever, may threaten the organization’s tax-exempt status unless the leaders clearly indicate that their comments do not represent the views of the tax-exempt charity with whom they are associated.

To ensure that your exempt charity is protected, there are a few easy steps to take:

» Develop a written policy prohibiting political activities, educate board members, establish internal controls to prevent political expenditures, and include disclaimers of support for political candidates.

» Provide equal time to candidates in public forums and debates and charge candidates the same amount for the use of facilities.

» Advocacy related to issues rather than specific legislation should coincide with the legislative session and not the election.

» Groups should monitor website links and review social media content to ensure that political material cannot be connected to the tax-exempt organization.

You can find out more about permissible and prohibited political activity by exempt charities at http://www.irs.gov/Charities-&-Non-Profits/Tax-Exempt-Organizations-and-Political-Campaign-Intervention.