144: Pretending It's 1995 | Breaking Down the IRS Changes for 501(c)(3) Status for Churches

144: Pretending It's 1995 | Breaking Down the IRS Changes for 501(c)(3) Status for Churches

Author: Jess Birken, MNM, JD August 7, 2025 Duration: 15:52

Have you heard? The IRS just gave churches the green light to endorse political candidates. 

It's Jess Birken here, and I'm back with my co-host Meghan to dig into a recent IRS policy change that could shake up the nonprofit and political landscape.

Real Listener Question: Not a listener question this time — Meghan brought the heat herself: "Did the IRS really just say churches can endorse political candidates from the pulpit? What does that mean for everyone else?"

This episode covers some breaking nonprofit news (well, as breaking as it gets around here). The IRS just shifted how it interprets the Johnson Amendment — and the result is that churches can now legally endorse candidates if it's "in connection with religious services." That's a big deal, not just for religious orgs, but for how money moves in campaigns and the broader nonprofit world. Meghan and I unpack what this ruling really means, how it might impact campaign finance, and why it feels like the rules suddenly don't apply equally anymore.

What You'll Learn:

  • What the Johnson Amendment is and how it used to work
  • How a recent court filing changed enforcement for churches
  • Why this doesn't apply to other nonprofits
  • How this opens the door to new forms of dark money in political campaigns
  • Why this matters even if your nonprofit isn't religious
  • What the potential downstream effects might be in campaign finance
  • Why transparency is the real issue underneath it all

Bottom line: This isn't just about churches. It's about the integrity of the nonprofit sector and the role transparency plays in public trust. If you care about clean campaigns and nonprofit accountability, you should be paying attention.

Resources from this Episode

        Learn more about the IRS changes to the Johnson Amendment: https://www.npr.org/2025/07/08/nx-s1-5460886/irs-now-says-pastors-can-endorse-political-candidates

        Hear our convo about the new IRS commissioner in episode 139: https://birkenlaw.com/charity-therapy-podcast/ct139/

        Previous Episode: What Happens If You Don't Do the Nonprofit Filings?: https://youtu.be/vxSB2wlR9N0?si=lmHHWL_dJU8R6Zia

        Episode Transcript: https://birkenlaw.com/wp-content/uploads/2025/07/CT144_Transcript.pdf

Connect with Us

        Jess Birken: https://www.linkedin.com/in/jessbirken/

        Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/

Listen & Engage

        Listen on Apple Podcasts | Spotify | YouTube | Amazon Music

        Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review"

        Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story  

Stay Connected

        Sign up for the Birken Law Email list: https://birkenlaw.com/signup/  

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Ever find yourself wishing for a direct line to seasoned nonprofit leaders, a chance to unpack the real challenges that don’t make it into the glossy annual reports? Charity Therapy is that conversation. With host Jess Birken, who brings her background as a lawyer and a Master of Nonprofit Management to the table, each session feels like pulling up a chair with a trusted advisor. The discussions move beyond theory, tackling the granular details of operations that leaders actually face-whether it’s navigating a tricky IRS compliance question, rebuilding a fundraising strategy from the ground up, or managing the complex interpersonal dynamics that define any mission-driven team. This podcast digs into the operational heart of the sector, offering pragmatic insights you can apply directly to your own work. It’s a resource built on the understanding that running a nonprofit is a continuous practice of problem-solving, and Jess guides these explorations with clarity and a deep respect for the work. Tune in for honest dialogue that treats the daily grind of management as the serious and nuanced craft that it is.
Author: Language: English Episodes: 100

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