Many Hands grantees and nonprofits throughout the country may be impacted by yet another federal policy change. The Internal Revenue Service says it wants to allow churches and religious-affiliated tax exempt 501(c)(3) organizations to endorse political candidates. That policy change depends on pending court action, but many nonprofits have expressed concern about the potential broader consequences of such a change.
In July 2025, the IRS submitted a filing in a Texas federal court challenging the constitutionality of a 71-year-old statute that bans charitable organizations from taking part in partisan politics. The IRS sided with four religious organizations whose lawsuit argues that the 1954 Johnson Amendment violates their First Amendment right to the free exercise of religion and speech. The judge has yet to rule, so it is not known if the decision will apply just to the parties to the case or have a wide-reaching impact.
Diane Yentel, the president and CEO of the National Council of Nonprofits, called the IRS court filing deeply concerning. Ms. Yentel said the action “is not about religion or free speech, but about radically altering campaign finance laws. Charitable nonprofits are among the few remaining trusted spaces where people come together across differences to solve community problems,” she said, “and undermining the law that protects their nonpartisanship could severely damage the integrity and effectiveness of the entire sector.”
More than 5,800 nonprofits and 4,300 faith leaders have signed letters opposing any change that would politicize the charitable nonprofit community. The Community Letter in Support of Nonpartisanship said existing law “protects the integrity and independence of charitable nonprofits and foundations,” shielding them “against the rancor of partisan politics.”
In a Pew Research poll in September 2022, 77% of U.S. adults said churches and other congregations should not make political endorsements.