Nonprofits can be ‘political’ in a perfectly legal way

There’s a reason why so many nonprofit organizations actively encourage New Mexicans to vote.

Among the reasons are to inform people about the issues of the day, to contact their elected representatives and understand the positions they take and to participate in shaping public policy.

That’s democracy and we believe in it. Community Action New Mexico shares this belief with many other nonprofits, including the National Rifle Association, Mothers Against Drunk Driving and even C-SPAN.

Community Action is strictly nonpartisan –- we neither support nor oppose specific candidates for office. Nor do we advocate for a particular ballot measure. And yet we are wholeheartedly political. Just like hundreds of other nonprofit organizations in New Mexico, we seek to influence public policy through education and advocacy. And we do so entirely within the guidelines set for 501(c)3 and (c)4 nonprofits by the Internal Revenue Service, the Federal Election Commission and decisions handed down by the U.S. Supreme Court.

So why are some New Mexico politicians attacking the nonprofit sector this year, determined to hamstring our advocacy and public education work?

Are they ignorant of the fact that our advocacy work delivered more than $2.6 billion of benefits to New Mexicans between 2003 and 2007, according to a study by the National Committee for Responsive Philanthropy? Do they not value the impressive and desperately needed return on investment to New Mexico’s economy?

Without the extensive services provided by nonprofits in all of our communities, the additional pressure on the state budget would be enormous. We certainly don’t need that right now.

So what’s the problem? Apparently, some of us are too “political.”

In addition to providing needed services and advocating for policies that would address basic social problems, we advocate for democracy, free speech, fair tax policy and the public accountability of our elected officials. For some legislators that makes us public enemy No. 1 –- when they disagree with us. They don’t want cameras on their deliberations at the Roundhouse. And they don’t want nonprofits helping the public understand how they vote or whom they accept money from.

Just as they would block the camera, they want to muzzle the messenger. A Senate bill recently introduced in the Roundhouse would require all nonprofits with the IRS designation 501(c)4 to register as political action committee regardless of whether they are actually operating for the distinct purpose of a PAC. That specific purpose is to influence the outcome of a ballot measure or the election or defeat of a candidate for public office.

This requirement would mean that any group that sets up a table in front of the local Smith’s grocery store to register people to vote would have to register as a PAC and be subject to reporting requirements that the courts have long ruled an infringement on free speech.

Grass-roots citizen activity like this is at the very heart of democracy. Burdening it with excessive bureaucracy will have the practical effect of chilling a group’s willingness to take up the task of encouraging civic engagement. PACs are subject to a whole different set of rules and reporting requirements from nonprofits.

Further, Senate Majority Leader Michael Sanchez, D-Belen, has indicated publicly that he wants to see legislation passed that would require 501(c)3 nonprofits that he deems “political” — and that the attorney general would have broad discretion to deem ‘too political’ — to register as PACs. That would amount to being required to engage in a whole new layer of tracking and reporting of donations and expenditures.

If campaign contribution limits on donations to PACs pass, the nonprofits now designated as PACs would also be restricted in the donations they could accept.

Engaging in democratic action is certainly a political act. Advocating to end poverty or expand health care to New Mexico’s most vulnerable citizens is political. Letting the public know about the votes of a public official is political. But that’s not same same thing as “political action” as defined by law requiring registration as a PAC. Simply acting in the public policy arena –- the realm of politics –- does not violate those guidelines.

If that were the case, the majority of New Mexico’s nonprofits would have to redefine themselves as political action committees and be subject to an additional layer of itemizing expenses, reporting on expenditures and limiting contributions accepted from people who support our missions.

But what is political is the motivation behind the move to force nonprofits with broad missions that include civic engagement to redefine themselves as political action committees.

As Supreme Court Justice William O. Douglas once said, “Free speech is not to be regulated like diseased cattle and impure butter.”

Ona Porter is executive director of Community Action New Mexico.