Citizens United: What Now?
On January 21, 2010, the Supreme Court issued a controversial, 5-4 opinion in Citizens United v. FEC, a case that will greatly impact nonprofit advocacy activities.
While much of the focus has been about increased spending by for-profit corporations, these changes also apply to issue-based organizations that promote the social good. More than ever, nonprofit corporations can and should actively participate in elections. Even if you think the case was wrongly decided, 501(c)(4)s and other nonprofit corporations (except for 501(c)(3)s) should take advantage of it—use it to strengthen democracy by increasing your public communications about the candidates and what's best for the future of our country.
Alliance for Justice is committed to providing nonprofits with the information needed to navigate this new legal landscape. Check out our resources…more will be coming soon.
UPDATES
Legislative Updates
- The Congressional Research recently released a report providing an overview of selected campaign finance policy options that may be considered by Congress to respond to the Supreme Court's decision in Citizens United. The report also comments on how Citizens United might affect political advertising. This report is available here: http://assets.opencrs.com/rpts/R41054_20100201.pdf.
Regulatory Updates
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- The Federal Election Commission announced that, "due to the Supreme Court's decision in Citizens United v. FEC," it will "no longer enforce statutory and regulatory provisions prohibiting corporations and labor unions from making either independent expenditures or electioneering communications." While Citizens United did not directly address labor unions, we presumed the FEC ultimately would not treat unions differently from corporations, and FEC's announcement Friday confirms our assumptions. In its announcement, the FEC also described various steps it is taking to conform with the decision, including various rulemakings. Read the FEC's full announcement at: http://www.fec.gov/press/press2010/20100205CitizensUnited.shtml.
What Does Citizens United Do: Key Aspects
- It does not impact 501(c)(3)s. Regardless of the changes in election law, the federal tax law that prohibits 501(c)(3)s from supporting or opposing candidates still apply. 501(c)(3)s still cannot endorse candidates or make independent expenditures suggesting who is the "better" candidate.
- It does not allow corporations to make monetary or in-kind contributions directly to candidates for federal office or to coordinate communications with candidates. The prohibition on corporate contributions to candidates and coordinated communications remain intact.
- It allows corporations, including nonprofit corporations such as issue-based 501(c)(4)s and 501(c)(6)s, to make independent expenditures containing express advocacy using the corporation's general treasury funds to support or oppose candidates for the U.S. House, U.S. Senate, and President. However, nonprofit corporations remain subject to federal tax law, including a primary purpose restriction (political activities cannot be the primary purpose of a 501(c)(4), 501(c)(5), and 501(c)(6)) and possible tax on political activities.
- It allows corporations to make "electioneering communications."
- Although corporations may now make independent expenditures and electioneering communications, they must comply with existing disclosure and disclaimer requirements.
What Does Citizens United mean for nonprofits?
AFJ Statements on Citizens United
AFJ in the News
- On February 16, 2010, Abby Levine, AFJ's Deputy Director of Advocacy Programs, participated in a panel on Citizen's United at the Hudson Institute
» Watch on C-SPAN
- Chart outlines nonprofits impact of Supreme Court campaign-finance ruling
» Chronicle of Philanthropy
- Supreme Court campaign-finance ruling could aid nonprofit advocacy but adds new concerns
» Chronicle of Philanthropy
