An Act To Amend Title 6 Of The Delaware Code Relating To Nonprofit Organizations And The Prohibition Of Partisan Political Activities.
If enacted, the bill will reinforce the principles laid out by the Johnson Amendment, which has historically ensured that nonprofits remain free from political influence in exchange for their tax-exempt status. As a result, any nonprofit that violates these provisions could face serious consequences, including penalties, revocation of eligibility for state grants, and the need for corrective actions. This could significantly impact the operational capacity and mission focus of nonprofits across the state, particularly those that may have active political advocacy components.
House Bill 392, known as the Delaware Nonprofit Nonpartisanship Protection Act, seeks to amend Title 6 of the Delaware Code to explicitly prohibit tax-exempt nonprofit organizations (under Section 501(c)(3) of the Internal Revenue Code) from engaging in any partisan political activities. This includes endorsing or opposing political candidates, using charitable funds for political purposes, or allowing organizational resources to support or oppose candidates for public office. The bill aims to preserve the integrity and nonpartisan nature of nonprofits, which play a vital role in the community.
The sentiment surrounding HB 392 largely appears supportive among legislators advocating for the bill, who emphasize the importance of maintaining a nonpartisan environment for nonprofits that build trust within the community. However, some concerns may arise regarding the potential restrictions placed on organizations that wish to engage in advocacy on issues close to their missions, leading to debates about balancing nonpartisanship and the rights of nonprofits to express political views.
Notable points of contention surrounding the bill involve discussions over whether such restrictions might hinder nonprofits from effectively advocating for legislative changes that affect their constituencies. Critics might argue that the prohibition on partisan activities could prevent nonprofits from fully participating in the political discourse, thus undermining their voices on critical issues. These discussions highlight the tension between preserving the integrity of nonprofit organizations and allowing them the freedom to assert influence on political matters that intersect with their missions.