Summary

Creates a limited safe harbor for 501(c)(3) organizations so that making statements related to their exempt purpose will not by itself cause them to fail the “organized and operated exclusively” test or be treated as political campaign intervention, provided the statements are part of the organization’s regular activities and produce only de minimis additional expenses. The rule applies to taxable years ending after the date of enactment.

Key Points

• Creates a narrow safe harbor allowing 501(c)(3) organizations to make content-based statements tied to their exempt purpose without automatic campaign-intervention treatment.
• Protection applies only if the statement is part of the organization's normal activities and causes no more than de minimis extra expenses.
• Applies for taxable years ending after enactment.
• Affects the legal analysis under the "organized and operated exclusively" test and related tax provisions that govern deductions and penalties.

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