S. 1205 — Free Speech Fairness Act

This section establishes a special rule under IRC §501 permitting 501(c)(3) organizations (i.e., tax-exempt charitable organizations, which are prohibited from participating or intervening in political campaigns) to make statements relating to political campaigns without jeopardizing their tax-exempt status or related charitable deduction and excise tax treatment, provided the statements are made in the ordinary course of the organization's regular and customary activities in carrying out its exempt purpose and result in not more than de minimis incremental expenses. The rule applies for purposes of §501(c)(3) and IRC §§170(c)(2), 2055, 2106, 2522, and 4955 and is effective for taxable years ending after enactment.