Christian Churches and Nonprofits Traded Freedom of Speech for Tax Deductions in 1954.

In the early days of the American Republic, support for democracy came largely from Bible-believing people. They came from a wide swath of denominations, but they all shared a love for fundamental rights of free expression, which are now enshrined in the US Constitution.

Christian pastors felt obligated to speak out on the leaders and the issues that affected the members of their congregations and all Americans. They were the influencers of their time.

It wasn’t until 1954 that Senator (later President) Lyndon Johnson poisoned the well of free expression that had existed for over 175 years.

The Johnson Amendment

The Johnson Amendment is a provision in the US tax code that prohibits all 501(c)(3) nonprofit organizations from endorsing or opposing political candidates. Many types of nonprofits fall under the 501(c)(3) umbrella, not just religious organizations.

Of course, local churches are a significant presence among 501(c)(3) nonprofit organizations, so they have been banned from political discourse under the threat of losing their tax-exempt status.

This tax-exempt status is the mechanism that allows churches to be exempt from taxes on donations and for individuals to deduct those donations from their tax liability.

In effect, denominations and local churches gave up their legacy of offering moral guidance about politicians and political issues in the marketplace of ideas to get financial benefits.

Debate about the Johnson Amendment

Surprisingly, in 1954, there was little pushback from the Christian community. The country was not as polarized as it has become since the advent of “identity politics” during the Obama Administration, so there was a consensus to be silent.

It seems impossible for any group to relinquish its right to speak as one voice. Yet, at the time, people saw reasons for allowing this gag order, which disproportionally affected people of faith, to stand.

Proponents of the regulation fear that political campaign contributions might be funneled through 501(c)(3) organizations since churches are exempt from those reporting requirements. It would be a way of bypassing campaign financing laws. This would be an easy legislative fix without the draconian muzzling of Christian voices.

Quixotically, those who favor the law think the public trust in nonprofit and religious organizations will be diminished if they were again able to endorse candidates as they did before 1954. This is a rather shallow argument since many activist groups are 501(c)(3) organizations and frequently speak out on social issues and endorse the politicians who support their views.

There have been attempts to eliminate the bigotry of the Johnson Amendment in the past. About 20 years ago, the Alliance Defending Freedom attempted to challenge the Johnson Amendment through the “Pulpit Freedom Initiative.” They urged ministers to use their rights to free expression to protest the IRS regulation.

In 2017, President Trump made a half-hearted attempt to cure this free expression injustice. He signed the “Presidential Executive Order Promoting Free Speech and Religious Liberty.” It had no effect since the Johnson Amendment was allowed to remain on the books. The matter has been ignored until recently.

Why Evangelical Broadcasters Are Suing the IRS

As noted, contributions to political campaign funds by 501(c)(3) nonprofit organizations or public statements of position in favor or in opposition to any candidate for public office are disallowed.

Lawyers for the National Religious Broadcasters, two Baptist churches, and an independent prayer ministry are contending in their lawsuit that the ban on engaging in politics restricts their freedom of speech and religion, according to a report by Bob Smietana of Religion News Service.

The lawsuit points out that hundreds of newspapers are organized under 501(c)(3), yet many regularly endorse political candidates. Thus, the Johnson Amendment is not applied fairly and has become an apparent weapon to inhibit the free speech of people of faith.

The IRS must hold all 501(c)(3) nonprofit organizations to the same standard about what they can or cannot say. It would be far better, however, to unshackle people of faith from their arcane, discriminatory regulation. Democracy demands that groups be able to speak with one voice without restrictions.