IRS Allows Churches Endorsing Candidates To Retain Tax-Exempt Status

In a significant policy shift, the IRS has announced that houses of worship may endorse political candidates from the pulpit without risking their tax-exempt status, effectively carving out an exception to the Johnson Amendment, which since 1954 has prohibited tax-exempt organizations from engaging in political campaign activities. This change came as part of a settlement in a lawsuit filed by the National Religious Broadcasters and several churches, which argued that the amendment infringed on their First Amendment rights. The IRS's joint court filing stated that political communications during religious services are akin to family discussions and should not be treated as political campaign interventions. The move aligns with President Donald Trump's longstanding pledge to eliminate the Johnson Amendment, including his 2017 executive order directing the Treasury to disregard it. While the policy shift has been welcomed by many religious groups as a protection of free speech and religious exercise, it has also raised concerns about the potential for increased political activity within churches. This development applies nationwide, with specific mention of Florida churches now empowered to endorse candidates, continuing a trend of political engagement in faith communities.