DOVER – Legislation filed Thursday would protect Delaware nonprofits from partisan political pressure by codifying a decades-old federal law that prohibits tax-exempt organizations from engaging in partisan political activities.
Sponsored by Rep. Melanie Ross Levin and Sen. Dan Cruce, House Bill 392 would require nonprofit nonpartisanship by prohibiting Delaware nonprofits from endorsing or opposing candidates and banning use of charitable funds for partisan purposes.
“Non-profits are issue-based organizations, not political agents,” said Rep. Ross Levin.
“We rely on them in the legislature to inform our decision-making, because we operate with the understanding that their loyalties lie only with their mission statements, not political candidates. By codifying the Johnson Amendment in our state code, we are protecting a decades long tradition that has reinforced the integrity and nonpartisan nature of these organizations.”
Entitled the Delaware Nonprofit Nonpartisanship Protection Act, HB 392 largely follows the provisions of the Johnson Amendment, a 72-year-old provision in the federal tax code.
Since 1954, the Johnson Amendment has provided that in exchange for tax-exempt status, a charitable nonprofit, foundation, or religious organization may “not participate in, or intervene in any political campaign on behalf of any candidate for public office.” This provision has protected these groups by ensuring that organizations dedicated to the public good in communities remain above the political fray.
In National Religious Broadcasters v. Bessent, the plaintiffs and the IRS jointly moved for a consent judgment that would have prohibited enforcement of the Johnson Amendment against the plaintiff, arguing that it violates the First Amendment’s protections of speech and religious exercise. In March, the court denied the motion.
Had this case succeeded, it would have served to weaken the Johnson Amendment or render it unenforceable, which could have drawn nonprofits into partisan political activity and risked undermining the neutrality of the nonprofit community.
Locally, the federal court case and its potential impacts were closely tracked by DANA, the Delaware Alliance for Nonprofit Advancement, a member organization that represents and advocates for Delaware’s nonprofit community.
“Delaware nonprofits don’t ask a person’s political affiliation before providing food assistance, healthcare, housing, counseling or other services. We dive right in and help our neighbors, because that’s what Delawareans do for each other,” said DANA Executive Vice President & Chief External Affairs Officer Melissa Hopkins.
“Being nonpartisan is foundational to nonprofit organizations’ existence. It instills confidence among politicians and the public alike that we don’t have an agenda, and we aren’t politically coerced. The Johnson Amendment has been a vital part of that foundation, and by passing the Delaware Nonprofit Nonpartisanship Protection Act, we can enshrine those protections here in Delaware.”
Also under HB 392, the Delaware Department of Justice, in coordination with the Department of State, would provide oversight and investigation, with periodic reviews by the State Auditor of Accounts. Nonprofits that violate this bill would face penalties, such as loss of eligibility for state funding, civil fines, and required corrective actions, such as restitution of misused funds.
HB 392 has been assigned to the House
House Economic Development/Banking/Insurance & Commerce Committee.
