These memos are from a public policy class I took. Tax-exemptions for non‐profits exist so contributors have the added incentive to make donations. The government bestows tax-exempt status with the assumption that these groups act in a nature that benefits the community more than it benefits the organization monetarily. An amendment to the tax code stating that tax-‐exempt organizations could not “participate in, or intervene in…any political campaign on behalf of or in opposition to any candidate for public office,” was added in 1954. The “Johnson Amendment”, named after then Senator Lyndon B. Johnson, also prohibits 501c3s from donating to political campaigns on behalf of the organization.
Lael Wageneck 