Free Speech Fairness Act

Summary

Permits 501(c)(3) charities and similar tax-exempt organizations to make statements whose content might otherwise be viewed as political, without being treated as failing the “organized and operated exclusively” test or as participating in a political campaign, so long as the statements are (1) made in the ordinary course of the organization’s regular, customary activities that further its exempt purpose, and (2) cause no more than de minimis incremental expenses. The rule applies to taxable years ending after the date of enactment.

• Creates a content-based safe harbor for certain statements by 501(c)(3) organizations.
• Protection applies only if the statement is part of the organization's ordinary, customary activities and incurs only de minimis incremental expense.
• Does not broadly authorize political campaign intervention or large-scale partisan activity by charities.
• Applies to taxable years ending after enactment.
• Leaves existing lobbying and campaign intervention prohibitions in place except for this narrow content-based rule.
• Could increase public issue commentary by mission-driven nonprofits, religious groups, and schools.
• Creates potential for IRS guidance and legal challenges to define “ordinary and customary” and “de minimis.”
• Likely limited fiscal impact but could affect enforcement workload for the IRS.