ALBANY, NY – A new bill from New York State Democrats aims to regulate non-exempt nonprofits, including churches and charities, that get involved in political campaigns.
The initiative, proposed by Senator James Scorfes and Assembly member Tony Simone, focuses on creating a state-level process to enforce federal regulations currently under scrutiny.
The proposed legislation, known as S8745, seeks to enshrine the Johnson Amendment—established in 1954—into state laws. This amendment is designed to prevent political candidates from influencing or opposing 501(c)(3) organizations (which encompass charities, foundations, and religious groups) and from jeopardizing their tax-exempt status.
According to the bill, “political campaign activities” encompass any sort of involvement in campaigns for or against candidates, which can include actions, communications, or expenditures. It prohibits organizations from advocating for the election or defeat of any candidate through contributions or public statements.
In discussing the bill, Simone emphasized the need for community organizations to avoid partisanship, suggesting that fostering a neutral space is crucial.
The legislation permits lobbying against the law as long as it doesn’t interfere with campaigns, and allows for nonpartisan voter education activities, like publishing guides or hosting forums. It also outlines safe zones where organizations can invite public office candidates to events, provided all qualifying candidates are equally invited.
Simone’s office noted that this new bill will introduce a separate certification process for tax-exempt organizations at the state level. Essentially, even if the federal Johnson Amendment is altered or eliminated, New York’s rules will remain intact.
Skoufis, who once considered running for chair of the Democratic National Committee, remarked in an email that most New Yorkers prefer political discussions to stay out of venues like soup kitchens and churches. He added that tax exemptions are meant to benefit the public as a whole, not just those who align with a specific political stance.
Historically, federal courts have upheld the constitutionality of the Johnson Amendment. For instance, in the case of Branch Ministries Inc. v. Rossotti, the IRS revoked a church’s tax-exempt status after it criticized presidential candidates and ran ads. The court affirmed that the government has a legitimate interest in maintaining tax integrity and limiting partisan activities regarding tax exemptions.
However, the conversation around the Johnson Amendment reignited on July 7 when the IRS decided not to enforce provisions against two churches that had been sued. The agency explained that discussing electoral politics within a religious context wouldn’t equate to “participating” or “intervening” in political campaigns.
During a 2017 National Prayer Breakfast speech, President Trump referenced Thomas Jefferson, advocating for the removal of the Johnson Amendment to allow religious representatives to speak openly. That year, he eased enforcement and directed the Treasury Department to avoid adverse actions against religious groups.
In 2019, then-Governor Andrew Cuomo signed a bill known as S4347/A623, which aimed to strengthen restrictions related to the Johnson Amendment, aligning state interpretation with federal guidelines.
The current bill expands on this by introducing new stipulations to tax law, altering real estate regulations, and possibly revoking real estate tax exemptions for entities engaging in political campaign activities. It also provides clearer definitions and establishes mechanisms for the state’s Department of Taxation and Treasury to oversee and enforce these provisions.
