On July 7, the Internal Revenue Service (IRS) overturned an over 70-year-old interpretation of the Internal Revenue Code via a federal court filing in the U.S. District Court for the Eastern District of Texas, which now essentially permits churches to endorse political candidates to their congregations without risking the loss of their tax-exempt status.
Until Monday’s filing, the Johnson Amendment had barred certain nonprofit groups, including churches, from endorsing political candidates without jeopardizing their tax-exempt status. In 1954, Congress approved an amendment by Sen. Lyndon Johnson to prohibit 501(c)(3) organizations, including charities and churches, from engaging in any political campaign activity. The most recent change came in 1987 when Congress amended the language to clarify that the prohibition also applies to statements opposing candidates.
Monday’s IRS filing stated, in part:
“Communications from a house of worship to its congregation in connection with religious services through its usual channels of communication on matters of faith do not run afoul of the Johnson Amendment as properly interpreted . . .
When a house of worship in good faith speaks to its congregation, through its customary channels of communication on matters of faith in connection with religious services, concerning electoral politics viewed through the lens of religious faith, it neither ‘participate[s]’ nor ‘intervene[s]’ in a ‘political campaign,’ within the ordinary meaning of those words.”
The filing was part of a joint motion by the IRS, the National Religious Broadcasters, and two Texas churches to settle a lawsuit filed last year, alleging that the Johnson Amendment violated the First Amendment rights to freedom of speech and expression of religion, as well as other constitutional violations.
