KEY TO WHAT’S ALLOWED

Unlimited activity Not considered candidate election activity under I.R.S. rules

Limited activity Candidate election activity (In practice, may not make up more than half of activity)

Not allowed

Before 2002

Since the 1970s, social welfare groups (and corporations and unions) were not allowed to use their treasury funds to support or oppose candidates. They could run issue ads that mentioned a candidate, along with other nonpartisan voter activities.

ISSUE ADS

EXPRESS ADVOCACY

VOTER ACTIVITIES

Includes registration drives, voter guide distribution and events with candidates close to an election.

Ads supporting or opposing public policies. May mention a candidate for office.

Ads advocating the election or defeat of a candidate. Reported to the Federal Election Commission as an independent expenditure.

2002

RESTRICTED

A new law sought to regulate the use of candidate-specific issue ads and barred the use of corporate money to broadcast a certain type of them: “electioneering communications.”

ISSUE ADS

ELECTIONEERING

EXPRESS ADVOCACY

VOTER ACTIVITIES

Issue ads broadcast 60 days before a general election and mentioning a candidate. Reported to the F.E.C.

A small set of social welfare groups that did not receive money from corporations could broadcast these ads.

2007

LOOSENED

A court ruled that all social welfare groups could broadcast certain electioneering ads, even if they received funds from corporations and unions.

ISSUE ADS

ELECTIONEERING

EXPRESS ADVOCACY

VOTER ACTIVITIES

Even though it is reported to the F.E.C., many groups do not categorize electioneering spending as “political” when filing with the I.R.S.

2010

LOOSENED

The Citizens United Supreme Court decision overturned the ban on social welfare groups and other corporations using their own money for express advocacy and electioneering. Nonprofit spending, much of it fueled by new corporate money, ballooned during the 2010 and 2012 elections.

ISSUE ADS

ELECTIONEERING

EXPRESS ADVOCACY

GRANTS

VOTER ACTIVITIES

Some groups use funds not dedicated to politics to make grant contributions to other nonprofits involved in political activities.

Proposed rules

WOULD RESTRICT

WOULD RESTRICT

WOULD RESTRICT

In the wake of the 2012 election, in which spending by social welfare groups nearly tripled, the I.R.S. has proposed rules to impose new limits on the political activity they can participate in. The agency outlined a new category, “candidate-related political activity,” that would include several previously unrestricted activities.

ISSUE ADS

ELECTIONEERING

EXPRESS ADVOCACY

GRANTS

VOTER ACTIVITIES

“CANDIDATE-RELATED POLITICAL ACTIVITY”