Trump, the Tax Code, and Religion, Oh my!

When it was originally introduced, Section 501(c)(3) drew as much attention as the next line of text in the 1954 Internal Revenue Code. Now, this section is highly divisive. Nicknamed the “Johnson Amendment” after its sponsor, Lyndon B Johnson, this provision prohibits nonprofit organizations from intervening or participating in any race for public office. Nonprofit organizations are not allowed to contribute financially or state their position as a collective group. Nonprofits are allowed to host public forums, organize activities to encourage voter participation, and inform potential voters through education guides. However, all these activities must be impartial and non-partisan. If violated, the organization risks losing its nonprofit status.

Section 501(c)(3) is a financial issue—rather than a limit on first amendment rights—as it ensures donors are public and campaign finances are taxable. In May 2017, President Donald Trump signed an executive order which limited the Johnson Amendment. Trump stated the purpose of the order was "to defend the freedom of religion and speech". In section two of the document, he outlines “In particular, the Secretary of the Treasury shall ensure, to the extent permitted by law, that the Department of the Treasury does not take any adverse action against any individual, house of worship, or other religious organization on the basis that such individual or organization speaks or has spoken about moral or political issues from a religious perspective”. Rather than adding new things, Trump is merely telling the IRS to not enforce the law. While this initially appears to be a hardline stance, the law was already not enforced thoroughly. For example, Hillary Clinton was hosted and spoke at the National Baptist Convention on September 8, 2016 and televangelist Mark Burns advocated for Trump.

Mark Burns at a Trump Rally (prior to the election)

Because of how weak the provision is, churches are already able to use their freedom of speech; the Johnson Amendment protects financial corruption more than it limits free speech. Nonprofits hold and invest billions of dollars. Two concerns unique to churches is that the donations would be tax-deductible for donors and undisclosed to the public. For example, churches or clergy collect tax-free donations which could then go support a political candidate. Whereas a billionaire would have to tax their income and then donate, a church would have an untouched income to funnel to politicians. It also provides incentives for people to set up their own fraudulent nonprofits to donate anonymously and untaxed. With its repeal, the donations that previously would have been taxed would be lost. Section 501(c)(3) is more of a financial safeguard than a limitation of freedom of speech as it provides transparency for campaign finances and allows political donations to be taxed.



Sources:

"The Repeal of the Johnson Amendment: How Trump Is Trying to Put ...." 2 Aug. 2016, https://www.theatlantic.com/politics/archive/2016/08/how-trump-is-trying-to-put-more-money-in-politics/493823/. Accessed 28 Feb. 2019.

"Presidential Executive Order Promoting Free Speech and Religious ...." 4 May. 2017, https://www.whitehouse.gov/presidential-actions/presidential-executive-order-promoting-free-speech-religious-liberty/. Accessed 26 Feb. 2019.

"President Donald J. Trump Stands Up For Religious Freedom In The ...." 3 May. 2018, https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-stands-religious-freedom-united-states/. Accessed 26 Feb. 2019.

"Treasury Weakens Donor Disclosure Requirements for Some Nonprofits." 18 Jul. 2018, https://nonprofitquarterly.org/2018/07/18/treasury-weakens-donor-disclosure-requirements-for-some-nonprofits/. Accessed 26 Feb. 2019.