The Freedom From Religion Foundation is cheering a federal court decision yesterday that dismissed a lawsuit seeking to undermine a longstanding provision of federal law preventing charitable nonprofits from engaging in partisan political activity.

In the March 31 ruling, a federal district court in Texas rejected an attempt by the National Religious Broadcasters  — backed by the federal government — to effectively nullify the Johnson Amendment through a proposed legal settlement. U.S. District Judge J. Campbell Barker held that the plaintiffs lacked jurisdiction under the Tax Anti-Injunction Act, which bars courts from intervening in disputes over potential tax liability before enforcement occurs.

The decision, for now, prevents a sweeping effort to allow churches to endorse political candidates while retaining their tax-exempt status. This is welcome news for advocates of state/church separation who realize that the proposed settlement would have opened the door to widespread partisan politicking by churches or other tax-exempt organizations. FFRF strongly criticized the IRS’ attempt to openly abandon enforcement of the Johnson Amendment against churches when the agreement was announced last summer.

“We’re pleased the Trump administration’s campaign to undermine the Johnson Amendment has been halted,” says FFRF Co-President Annie Laurie Gaylor. “Preventing 501(c)(3) organizations — including churches — from using tax-deductible donations for partisan electioneering is simple common sense. Contributions to political candidates aren’t tax-deductible, so nonprofits should not be allowed to funnel tax-exempt donations into politics.”

Adds FFRF Co-President Dan Barker, “Churches, unlike other 501(c)(3) nonprofits such as FFRF, are uniquely exempt from reporting to the IRS on income and expenditures, meaning churches are already financial black holes. Without the Johnson Amendment, the danger is that some churches could essentially become tax-free PACs.”

Earlier this year, the National Council of Nonprofits, along with FFRF, the American Humanist Association, Americans United for Separation of Church and State, Interfaith Alliance, Public Citizen and others, launched a national sign-on letter urging the federal government to preserve the Johnson Amendment. More than 1,800 nonprofits signed the letter, warning that weakening this law invites partisan interests into nonprofit spaces, distorts priorities, and jeopardizes long-standing community trust.

“Nonprofits exist to serve the common good, not partisan politics,” says Diane Yentel, president and CEO of the National Council of Nonprofits. “For now, the court has kept in place a foundational protection for the nonprofit sector and the communities we serve. The court’s decision maintains federal protections that keep partisan political manipulation out of charitable organizations, strengthening public confidence in nonprofits at a time when their vital work in communities across the country is more needed than ever.”

The lawsuit, brought by the National Religious Broadcasters with several Texas churches and national Christian groups, argued that the Johnson Amendment violates their First Amendment rights by restricting political speech from the pulpit. In a highly unusual move, the federal government had agreed with the plaintiffs and sought court approval of a settlement that would have barred the IRS from enforcing the law against the specific churches involved. If approved, the agreement would have created a major loophole, allowing houses of worship to engage in partisan campaigning while continuing to receive the benefits of tax-exempt status, effectively transforming them into unregulated political actors subsidized by taxpayers.

Thankfully, the court declined to approve the arrangement. The court also rejected arguments that the case qualified for a narrow exception to the law, noting that it was not “certain” the government would fail on the merits.

Although the ruling leaves open the possibility of future challenges in other forums, it stops, at least for now, a coordinated effort to dismantle a key protection that has been part of the federal tax code since 1954.

“Tax-exempt status is a privilege, not a right,” says Gaylor. “Organizations that choose to engage in partisan politics are free to do so — but they cannot receive special tax benefits while doing it.”

The Freedom From Religion Foundation is a U.S.-based nonprofit dedicated to defending the constitutional principle of separation between state and church and educating the public on matters relating to nontheism. With more than 41,000 members, FFRF is the largest association of freethinkers (atheists, agnostics and humanists) in North America. For more information, visit ffrf.org.

Read this press release online.

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