Parishes are exempt from federal income taxation because they are described in Section 501(c)(3) of the Internal Revenue Code and, therefore, are prohibited from participating or intervening in any political campaign on behalf of (or in opposition to) any candidate for public office, including publishing or distributing statements.
Section 501(c)(3) organizations may, however, engage in non-partisan voter education activities without jeopardizing their tax-exemption, and most Section 501(c)(3) organizations may engage in limited amounts of lobbying activities. Distinguishing between permissible and impermissible activities, therefore, represents an extremely important task for all Section 501(c)(3) organizations that might engage in political activities.

New Guidance
Revenue Ruling 2007-41 is available at IRS 501(c)(3) Ruling and provides important guidance to Section 501(c)(3) organizations. First, it provides an overview of the rules regarding political activity, defines key terms such as “candidate” and “voter education,” and references prior Revenue Rulings addressing candidate questionnaires and other matters. Second, it presents and analyzes 21 factual examples, each of which involves a Section 501(c)(3) organization sponsoring or participating in various non-partisan or political activities. These 21 examples address the consequences of the following activities:

• Voter Education, Voter Registration, and Get-Out-the-Vote Drives, including descriptions of permissible and impermissible telephone bank and information booth activities;

• Individual Activity by Organization Leaders, including an analysis of the consequences of certain actions taken by CEOs, presidents, ministers, and directors of 501(c)(3) organizations in their individual, rather than representative, capacities;

• Candidate Appearances, describing situations in which candidates may be invited to speak at a 501(c)(3) organization’s event;

• Candidate Appearances Where Speaking or Participating as a Non-Candidate, analyzing situations where candidates may be invited to speak at a 501(c)(3) organization’s event for a reason other than the candidacy itself (perhaps, for example, because the candidate is a well known expert on a topic of interest to the organization’s members);

• Issue Advocacy vs. Political Campaign Activity, describing situations in which a 501(c)(3) organization may conduct issue advocacy during a political campaign and may or may not be regarded as participating or intervening in the campaign;

• Business Activity, considering whether a 501(c)(3) organization’s sale or rental of its mailing lists, leasing of space, or acceptance of paid political advertising could constitute prohibited participation or intervention in a political campaign; and

• Websites, analyzing situations in which a 501(c)(3) organization’s website and the links it contains to other websites might constitute political activities that jeopardize the organization’s tax-exempt status.

The Archdiocesan Chancellor/Chief Financial Officer and finance staff are resources and available to provide technical assistance or make recommendations of other resources that are available to meet your needs.

Click here to download the manual as a PDF file

Pastoral Council Manual
[A Call to Discern As Disciples]

Dear Pastors, Parish Administrators, Parish Directors and Deacons:

The enclosed Parish Financial Administration Policy for the Archdiocese of Anchorage has been developed in response to the need for transparency in caring for the gifts that are given for the needs of the church and those whom we serve. The policy also assists us in protecting one another so no one can be unjustly accused of fraudulent activity. The policies provided here are effective July 1, 2007. It is my hope that as these policies are put into place, we will be able to say with confidence we are being good stewards of the financial gifts given to us. It will also enable us to provide regular and transparent information on our use of the gifts given to our care.

In order to fully implement these policies, I ask that we receive a list of your finance council members with their addresses by August 31, 2007. I believe it is important they each receive a copy of this document. Additionally, I ask that you contact Sr. Charlotte Davenport, (297-7712) to arrange a time for her or other financial staff to visit to assist you and your staff in understanding the practices this document outlines. Sr. Charlotte will also be available to meet with, and provide training, as needed, for finance councils. It is my hope that each parish/mission will be visited over the next 18 months.

Finally, be aware that the financial report for the fiscal year ending June 30, 2007 should be completed in accordance with these guidelines. If you have questions regarding this, please contact Sr. Charlotte. This report is due to the Office of the Archbishop usually by August 31, 2007, within 60 days of the close of the fiscal year.

This year only, I am extending the deadline to September 30, 2007.

Sincerely yours in Christ and Mary,
+Roger L. Schwietz, OMI
Archbishop of Anchorage