Court upholds longstanding law that keeps partisan politics out of charitable nonprofits and safeguards their ability to serve communities.
(WASHINGTON, DC) — Nonprofit organizations nationwide welcomed a federal court decision on March 31 dismissing a proposed legal settlement that would have barred enforcement of a federal law protecting nonprofits from partisan politics. While the legal settlement would have applied only to the two churches involved in the case, it nonetheless threatened to weaken a critical federal law, known as the Johnson Amendment, that for over 70 years has protected charitable and religious nonprofits from partisan political activity. This law ensures that 501(c)(3) organizations—including churches, food banks, and community nonprofits—can focus on their missions without political interference.
In its decision, the court held that it is barred from hearing the case under the Tax Anti-Injunction Act (AIA) because the issue at hand involves whether the two churches involved in the case would lose their tax-exempt status – and therefore, face tax liability – if they engage in partisan politics. The court decided that the case does not fall under an exception to the AIA, finding that it is not “certain” that the government would fail on the merits. According to the judge, “the court is not prepared to find plaintiffs’ contentions so undebatable as to foreclose any possibility of government success.” The plaintiffs, however, are expected to appeal the case to the U.S. Circuit Court of Appeals for the 5th Circuit.
“At Independent Sector, we’ve done comprehensive research on the potential harm of mixing partisan politics with the work of nonprofits, charitable foundations, and churches. The results are clear: Knocking down the wall between the charitable sector and political campaigning would erode public trust, heighten the perceived risk of corruption, and jeopardize relationships between service providers, volunteers, and the communities they serve,” said Dr. Akilah Watkins, President and CEO of Independent Sector. “This decision preserves the ability of nonprofit organizations to operate free of political influence and protects public trust in charitable work.”
Earlier this year, the National Council of Nonprofits, along with the American Humanist Association, Americans United for Separation of Church and State, Freedom From Religion Foundation, Independent Sector, Interfaith Alliance, Public Citizen, and others, launched a national sign-on letter urging the federal government to preserve the Johnson Amendment. More than 1,800 nonprofits signed the letter, warning that weakening this law invites partisan interests into nonprofit spaces, distorts priorities, and jeopardizes long-standing community trust.
Charitable nonprofits remain united in their call for Congress and the administration to continue to uphold the nonpartisan nature of the sector.
“Nonprofits exist to serve the common good, not partisan politics. For now, the court has kept in place a foundational protection for the nonprofit sector and the communities we serve,” said Diane Yentel, President and CEO of the National Council of Nonprofits. “The court’s decision maintains federal protections that keep partisan political manipulation out of charitable organizations, strengthening public confidence in nonprofits at a time when their vital work in communities across the country is more needed than ever.”
“It’s welcome news that, for now, the Trump administration’s relentless crusade against the Johnson Amendment has been quashed again. Preventing 501(c)(3) organizations, including but not limited to churches, from using their tax-deductible donations for electioneering, is simple common sense,” said Annie Laurie Gaylor, Co-President of Freedom From Religion Foundation. “If someone gives a donation or other support to a candidate, that support is not deductible for income-tax purposes. Nor should any 501(c)(3) entity, including churches, be allowed to use their tax-deductible donations for unaccountable electioneering.”
“We’re glad that the Johnson Amendment will remain a strong bulwark to stop religious extremists from exploiting houses of worship,” said Rachel Laser, President and CEO of Americans United for Separation of Church and State. “Tax-free giving to charities should fund charitable work, not partisan politics. The proposed settlement agreement to exempt only houses of worship and not secular nonprofits would have been unfair and a violation of church-state separation. It also would have been unhealthy for our democracy because it would allow churches to become unaccountable political action committees. The court was right to reject the administration’s attempt to use the courts to rewrite our laws.”
“This ruling is a victory for houses of worship, for our elections, and for the healthy boundaries between religion and government that have served American democracy for more than 70 years. We are relieved that the court rejected the Trump administration’s attempt to use the courts to quietly rewrite the Johnson Amendment, a law that has long protected our sacred spaces from being turned into partisan political tools.,” said Guthrie Graves-Fitzsimmons, Vice President of Programs and Strategy of Interfaith Alliance. “We have always believed that faith leaders can and should speak powerfully on the great moral issues of our time, but endorsing political candidates from the pulpit is a different matter entirely. It is corrosive to congregations, to communities, and to democracy itself. Interfaith Alliance will keep fighting to ensure that America’s houses of worship remain spaces of genuine community and care.”
“The court decision not to invalidate the Johnson Amendment on constitutional grounds is a confirmation of the popular will as well as validation of a half century of legal precedent. Special tax breaks to nonprofits – tax breaks not given to others – should not be used for political purposes by churches. Any group that wants to campaign for or against candidates has a right to do so by registering as a regular committee without special tax breaks just like the rest of us,” said Craig Holman, Ph.D., Government Affairs Lobbyist of Public Citizen. “The desire by a handful of churches to abuse nonprofit status for political gain simply is not shared by the larger faith community nor the public generally.”
Nonprofits, including houses of worship, remain some of the last trusted spaces where people from diverse political, religious, and cultural backgrounds come together to address community needs. Their credibility rests on one fundamental principle: they exist to serve the public, not political parties or candidates. Preserving their independence means protecting public trust, donor confidence, and the vital services people rely on every day.
For additional information, read the National Council of Nonprofits’ insights & analysis article here.
###
