H.R. 2501 — Free Speech Fairness Act

This section establishes a special rule under IRC §501(c)(3) permitting tax-exempt charitable organizations to make statements relating to political campaigns—without failing to qualify as operated exclusively for exempt purposes or being deemed to have intervened in (or participated in) any candidate's campaign—provided the statements are made in the ordinary course of the organization's regular and customary exempt activities and result in no more than de minimis incremental expenses. (As background, IRC §501(c)(3) organizations are generally prohibited from political campaign intervention to preserve their tax-exempt status and eligibility for donor tax deductions under IRC §§170, 2055, 2106, and 2522, as well as to avoid excise taxes under IRC §4955.) The rule applies to taxable years ending after the date of enactment.