Introduction and Explanation of IRS Regulations

Introduction and Explanation of IRS Regulations

One of the requirements in establishing an OCF chapter is the adoption of a governing Constitution  (By- Laws)  Since the OCF is a 501 (c) (3) IRS certified  Non- Profit Organization and your OCF will be at some point utilizing our resources and using our name we are subject to a few rules. Some sections are required in your constitution because of those rules.

To assist you in understanding these rules and their inclusion within an OCF Chapter Constitution we offer you the following  listing and explanation of the applicable IRS Guidelines. If you have any further questions please contact us at info@ocf.net


501 (c) (3)

Orthodox Christian Fellowship is a Non-Profit Religious Organization and also a 501 (c) (3) certified organization. In plain terms this means that we are tax-exempt in all states. Also, we are able to except tax-deductible donations. However being such an organization comes with stipulations. Those that directly affect local OCFs include:

  • This model constitution and the non-removable parts must be adopted by a local OCF before any financial support and resources are disbursed to a local effort.
  • Local OCFs may not influence legislation or participate in any political campaign (read more below).
  • Upon dissolution of a local OCF all remaining funds that it holds must be disbursed to a non-profit fund.


Here is language and information provided by the IRS regarding this status:

To be tax-exempt as an organization described in IRC Section 501(c)(3) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in IRC Section501(c)(3) and none of the earnings of the organization may inure to any private shareholder or individual. In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates.


Political Affiliations

Local OCFs may not promote or participate in political activities. An announcement as part of a general Fellowship publication, or notice on your web page of upcoming events, probably is fine.  Sponsoring a phone-bank, direct mail campaign, or other publishing activities directed at political issues will be a problem.   The issue for the IRS is whether funds or other resources of the tax-exempt organization are being used for political purposes. The prohibition against political involvement applies to the assets and resources of the tax-exempt entity (OCF), not to its members acting in their individual capacities.  What is prohibited is the use of the assets and resources of the entity to support a particular political candidate or issue.

Here is language and information provided by the IRS regarding this issue:

 

For purposes of IRC Section 501(c)(3), legislative activities and political activities are two different things, and are subject to two different sets of rules. The latter is an absolute bar. AIRC Section 501(c)(3) organization may not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office. Whether an organization is engaging in prohibited political campaign activity depends upon all the facts and circumstances in each case. For example, organizations may sponsor debates or forums to educate voters. But if the forum or debate shows a preference for or against a certain candidate, it becomes a prohibited activity. The motivation of an organization is not relevant in determining whether the political campaign prohibition has been violated. Activities that encourage people to vote for or against a particular candidate, even on the basis of non-partisan criteria, violate the political campaign prohibition of IRC Section 501(c)(3).

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