should be removed from evaluating the political ac-
tivities of any individuals or organizations. 
(b) POLITICAL ORGANIZATIONS.—Paragraph (1) of 
section 527(e) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(1) POLITICAL ORGANIZATION.—The term ‘po-
litical organization’ means a party, committee, asso-
ciation, fund, or other organization (whether or not 
incorporated)— 
‘‘(A) which is registered as a political com-
mittee with the Federal Election Commission, 
‘‘(B) has been determined, pursuant to 
proceedings under section 309 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 
437g) or by a court of law, to be a political 
committee, as defined under section 301(4) of 
such Act (2 U.S.C. 431(4)), or 
‘‘(C) which is organized and operated pri-
marily for the purposes of directly or indirectly 
accepting contributions or making expenditures, 
or both, for influencing or attempting to influ-
ence the selection, nomination, election, or ap-
pointment of any individual to any State or 
local public office and— 
VerDate Mar 15 2010 
03:45 May 10, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4593.IH
H4593
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(i) is not required to register with 
the Federal Election Commission, and 
‘‘(ii) is required to register with the 
appropriate State agency as a political 
committee.’’. 
(c) TAX-EXEMPT ORGANIZATIONS.—Section 501 of 
such Code is amended— 
(1) by redesignating subsection (s) as sub-
section (t), and 
(2) by inserting after subsection (r) the fol-
lowing new subsection: 
‘‘(s) PROMOTION OF SOCIAL WELFARE.— 
‘‘(1) IN GENERAL.—For purposes of paragraph 
(4)(A) of subsection (c), the term ‘promotion of so-
cial welfare’ shall include— 
‘‘(A) any political activity in furtherance of 
American democracy, provided that such activi-
ties do not exceed 50 percent of the organiza-
tion’s total activities (not including activities 
performed on a volunteer basis), 
‘‘(B) any activities for the purpose of edu-
cating individuals on issues of public impor-
tance and on the behavior of public officials, in-
cluding participation in ballot initiatives and 
referenda, and 
VerDate Mar 15 2010 
03:45 May 10, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4593.IH
H4593
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(C) any activity described in clauses (i), 
(ii), (iii), and (v) of section 301(9)(B) of the 
Federal Election Campaign Act of 1971 (2 
U.S.C. 431(9)(B)). 
‘‘(2) POLITICAL ACTIVITY IN FURTHERANCE OF 
AMERICAN DEMOCRACY.—For purposes of this sub-
section, the term ‘political activity in furtherance of 
American democracy’ shall include any activity de-
scribed in subparagraph (A) of section 301(9) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 
431(9)). 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to exempt an or-
ganization from satisfying any applicable require-
ments for filing as a political committee pursuant to 
the Federal Election Campaign Act of 1971 (2 
U.S.C. 431 et seq.).’’. 
Æ 
VerDate Mar 15 2010 
03:45 May 10, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H4593.IH
H4593
rfrederick on DSK6VPTVN1PROD with BILLS