Tax law expert: LDS Church's $1 million Idaho ballot donation unlikely to affect tax-exempt status

The Salt Lake Tribune reported on why The Church of Jesus Christ of Latter-day Saints can take a position on, and donate to, ballot measures without risking its tax-exempt status. Church leaders have publicly opposed Idaho's Proposition 1 and Nevada's Question 6, which would expand abortion access, and the church donated $1 million to the group opposing the Idaho measure. The Roman Catholic Diocese of Boise also contributed money. ^[1]

The Tribune said the 1954 Johnson Amendment sets limits on how tax-exempt charities, including houses of worship, can engage in politics. Voter education guides, get-out-the-vote drives and voter registration efforts are permitted. The line is drawn at backing or opposing candidates, since the IRS says 501(c)(3) organizations are "absolutely prohibited" from participating in a campaign for or against a candidate for public office. ^[1]

Sam Brunson, a tax law professor at Loyola University Chicago, said he knows of one church that lost its tax exemption in the amendment's 72-year history. He said a separate IRS rule bars an organization from making influencing legislation a substantial part of its activities, but that "a $1 million donation by the LDS Church does not rise to that level." ^[1]

In nearly identical statements in Idaho and Nevada, the church said it remains neutral on political parties and candidates but "addresses issues it believes have significant moral consequences," including abortion. ^[1]