It’s perfectly legal for a nonprofit that enjoys a tax-exempt status from the IRS to campaign for local ballot measures.
As a result, a San Mateo County housing nonprofit is campaigning in favor of a half-cent transit bailout tax and against Menlo Park’s Measure P, which would prevent the development of parking lots for public housing.
The San Mateo County Housing Leadership Council sent out an email Wednesday urging voters to vote “yes” on RTM and Prop 1 and “no” on Measure P.
Typically nonprofits can’t get involved in political activities; however, ballot measures count as lobbying rather than campaigning, said June Shin, a representative with the housing council.
If nonprofits campaign or endorse candidates, they would lose their tax-exempt status, according to IRS guidelines.
Although nonprofits are prohibited from campaigning or endorsing candidates, they may engage in some lobbying. However, too much lobbying can also risk loss of tax-exempt status, according to IRS guidelines.
The nonprofit also invited residents to join a virtual phone bank, where volunteers call voters to urge them to vote no on Measure P, as well as a canvassing event on Oct. 25.
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