B.2. Permitted Voter Registration Drives

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(1) Under Section 4945(f), an exempt Section 501(c)(3) organization may engage in

nonpartisan voter registration activities provided that certain requirements are satisfied. If an organization meets these requirements, an amount paid or incurred by a private foundation is not considered a taxable expenditure even though the use of such amount is otherwise described in Section 4945(d)(2). These requirements under Section 4945(f) and Treas. Reg. 53.4945-3(b) are as follows:

a. The organization engaging in the voter registration activities must be

described in Section 501(c)(3) and exempt from taxation under Section 501(a);

b. The voter registration activities must be nonpartisan. They must not be

confined to one specific election period or carried out in fewer than 5 states;

c. The organization must spend substantially all its income directly for the active

conduct of activities constituting the purpose or function for which it is organized and operated. This provision is satisfied if an organization spent at least 85% of its income for the active conduct of activities constituting the purpose or function for which it is organized and operated rather than to make grants to fund the activities of other organizations;

d. The organization must also receive at least 85% of its total support (other

than gross investment income) from other exempt organizations, the general public, governmental units (described in Section 170(c)(1)), or any combination of these sources. The organization may not receive more than 25% of such support from a single exempt organization, neither may the organization receive more than 50% of its total support from investment income (defined in Section 509(e)); and

e. Contributions to an organization for voter registration activities must not be

subject to conditions that they be used only in specified states, possessions of the United States, or political subdivisions or other areas of the foregoing, or the District of Columbia, or that they may be used only in one specified election period.

(2) A private foundation may provide funds to certain exempt Section 501(c)(3)

organizations to engage in certain nonpartisan voter registration activities.

(3) If a private foundation makes a grant to an organization described in Section

4945(f) (whether or not a private foundation), the grantor need not exercise expenditure responsibility with respect to that grant. Even if a grant to such an organization is earmarked for voter registration purposes generally, such a grant will not be treated as a taxable expenditure under Section 4945(d)(2) or (4) if such earmarking does not violate Section 4945(f)(5).