ARTICLE I. POLITICAL CAMPAIGN INTERVENTION

 Maeve Corp. is absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) a candidate for public office. Contributions to political campaign funds or public statements of position made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violation of this prohibition may result in revocation of tax-exempt status and/or imposition of certain excise taxes.

Certain activities or expenditures may not be prohibited depending on the facts and circumstances. For example:

·      The conduct of certain voter education activities (including the presentation of public forums and the publication of voter education guides) in a non-partisan manner do not constitute prohibited political campaign activity.

o   Note: An organization can request an IRS letter ruling on its voter education activities by writing to the address listed in IRS Publication 557, Chapter 3, “Political Activity.”

·      Other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not constitute prohibited political campaign activity if conducted in a non-partisan manner.

·      In contrast, voter education or registration activities with evidence of bias that would favor one candidate over another, oppose a candidate in some manner, or have the effect of favoring a candidate or group of candidates will constitute campaign intervention.

The political campaign activity prohibition is not intended to restrict free expression on political matters by leaders of Maeve Corp., provided that those leaders speak for themselves as individuals. However, for the organization to remain tax exempt under section 501(c)(3), organization leaders cannot make partisan comments in official organization publications or at official functions. When speaking in a non-official capacity, these leaders should clearly indicate that their comments are personal, and not intended to represent the views of the organization.

Some section 501(c)(3) organizations take positions on public policy issues, including issues that divide candidates in an election for public office. However, section 501(c)(3) organizations like Maeve Corp. must avoid any issue advocacy that functions as political campaign intervention. Even if a statement does not expressly tell an audience to vote for or against a specific candidate, an organization delivering the statement is at risk of violating the political campaign intervention prohibition if there is any message favoring or opposing a candidate. A statement can identify a candidate not only by stating the candidate’s name but also by other means such as showing a picture of the candidate, referring to political party affiliations, or other distinctive features of a candidate’s platform or biography. All the facts and circumstances need to be considered to determine if the advocacy is political campaign intervention.

The IRS considers the following factors that tend to show an advocacy communication is political campaign activity:

·      • Whether the statement identifies one or more candidates for a given public office;

·     • Whether the statement expresses approval or disapproval for one or more candidates’ positions and/or actions;

·      • Whether the statement is delivered close in time to the election;

·      • Whether the statement makes reference to voting or an election;

·      • Whether the issue addressed in the communication has been raised as an issue that may distinguish candidates for a given office, whether the communication is part of an ongoing series of communications by the organization on the same issue that are made independent of the timing of any election; and

·      • Whether the timing of the communication and identification of the candidate are related to a non-electoral event such as a scheduled vote on specific legislation by an officeholder who also happens to be a candidate for public office. 

When a 501(c)(3) public charity like Maeve Corp. participates in political campaign activity, it jeopardizes both its tax-exempt status and its eligibility to receive tax-deductible contributions. Further, the IRS may penalize 501(c)(3) public charities that engage in political campaign activity, by imposing an excise tax on the organization or revoking its tax-exempt status.

ARTICLE II. LEGISLATIVE ACTIVITIES (LOBBYING) 

Maeve Corp. is not permitted to engage in substantial legislative activity (commonly referred to as lobbying).  However, it can participate in lobbying activities, as long they are “to an insubstantial degree.”

What is Lobbying? Lobbying is defined as:

·. •. Contacting, or urging the public to contact, members or employees of a legislative body for purposes of proposing, supporting, opposing, or influencing legislation; or

•. Advocating the adoption or rejection of legislation.

 However, lobbying to influence legislation does not include:

·      • Making available the results of nonpartisan analysis, study, or research providing technical advice or assistance to a government body, or to its committee or other subdivision, in response to a written request from it, where such advice would otherwise constitute the influencing of legislation;

·      • Appearing before, or communicating with, any legislative body with respect to a possible decision that might affect the organization’s existence, powers, tax-exempt status, or the deductibility of contributions to it; or

·      •. Communicating with a government official or employee, other than for the purpose of influencing legislation.

What is “Substantial” Legislative Activity?

 If lobbying activities are “substantial,” a 501(c)(3) organization may fail the operational test and risk losing its tax-exempt status and/or be liable for excise taxes.  Substantiality is measured by either (1) the substantial part test or (2) the expenditure test, as defined below:

  (1)  The substantial part test determines substantiality on the basis of all the pertinent facts and circumstances in each case. The IRS considers a variety of factors, including the time and expenditures devoted by the organization to the activity, when determining whether the lobbying activity is substantial.

 (2)  As an alternative, a public charity (other than a church) may elect to use the expenditure test by filing Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organizations to Make Expenditures to Influence Legislation. Under the expenditure test, a public charity’s lobbying activity will not jeopardize its tax-exempt status provided its expenditures related to lobbying do not normally exceed a set amount specified in section 4911 of the Code. This limit is generally based on the size of the organization and may not exceed $1 million.

Public charities that engage in lobbying activities must report lobbying activities on Form 990, Schedule C, Political Campaign and Lobbying Activities.