Political Activities and Political Campaigns
Pratt institute's Guidelines for Participation
in Political Activities and Political Campaigns

I. Introduction
Pratt Institute is a not-for-profit organization, exempt from Federal taxation under Section 501(c)(3) of the Internal Revenue Code. Among other benefits, Pratt’s exemption from Federal taxation enables its donors to make tax-exempt contributions to the Institute.

Section 501(c)(3) of the Internal Revenue Code contains many conditions which a tax-exempt organization must adhere to in order to maintain its tax-exempt status. One such condition prohibits organizations from participating in, or intervening in, any political campaign on behalf of or in opposition to any candidate for public office. The condition also prohibits the administration, faculty and staff members of the organization from using Pratt’s name, money or other Pratt resources to participate in, or intervene in, any political campaign on behalf of, or in opposition to any candidate for public office. These prohibitions are ABSOLUTE, and failure to adhere to them could result in Pratt losing its Section 501(c)(3) tax-exempt status and could also result in penalty excise taxes assessed against Pratt and the Pratt administration, faculty and staff who violate the prohibitions.

These guidelines will set forth the following:

1. permissible and impermissible political activities and participation in political campaigns for the Pratt community under Section 501(c)(3) of the Internal Revenue Code;
2. the Internal Revenue Service (“IRS”) penalties for engaging in impermissible political activities;
3. what Pratt administration, faculty and staff members are required to do if they plan on participating in political activities and political campaigns as private citizens; and
4. what disciplinary action will be taken by Pratt against those members of the Pratt community who violate these guidelines.

II. What Activity Is Impermissible?
Political activities are impermissible and in violation of Section 501(c)(3) of the Internal Revenue Code when: a) there is a “candidate” who is seeking “public office”, and b) there is participation in or intervention in the candidate’s political campaign by Pratt Institute or by its administration, faculty and staff members using Pratt’s name and/or its resources.

“Candidate” includes any individual who offers him or herself, or is proposed by others, as a contestant for an elective public office. The elective public office can be state, local or national. This definition of candidate includes all persons who have already declared their intent to run for office, incumbents who have not yet announced their intention not to run again, and those persons who have not yet declared an intention to run but whose potential candidacy is the subject of intense public speculation.

“Participation or intervention in a political campaign” includes, but is not limited to, donations (including the purchasing of tickets to fundraising dinners), publication or distribution of written or printed statements on behalf of or in opposition to a candidate, and the making of oral statements on behalf of or in opposition to a candidate.

If you are unsure whether political activity you plan on engaging in Pratt’s name or with Pratt resources or whether your planned participation or intervention in a political campaign on behalf of Pratt is in violation of Section 501(c)(3) of the Internal Revenue Code, please see Pratt’s Vice President for Institutional Advancement before you proceed.

III. What Is Permissible?
The following activities are permissible and NOT in violation of Section 501(c)(3) of the Internal Revenue Code:

• Candidate Debates and Forums – Pratt must provide a fair and neutral forum and provide equal time to all qualified candidates for the contested office. Questions presented to candidates should be composed by an independent, nonpartisan group. Debates should begin and end with a clear statement that the views presented are those of the candidates and not of Pratt.
  
• Student Newspaper Endorsements -- Pratt student publications may publish editorials which oppose or endorse specific legislation and/or candidates for political office without endangering Pratt’s federal tax exemption. If such editorials are published, the publication must clearly state that the views reflected are those of the student editors and not of Pratt. Pratt can minimize the risk of tax controversy with respect to political statements in its student publications by ensuring that all content and editorial decisions remain in the hands of the students and by printing a statement to that effect in every issue of the publication.
  
• Voter Registration on Campus – This activity must be done in a nonpartisan and fair manner.

IV. Individual Participation in Political Activities and Political Campaign
A major source of concern to Pratt is how to ensure that the participation in political activities and/or political campaigns by members of its community – a faculty member, student organization, senior university official – is not attributed to Pratt. Pratt recognizes that members of its community may serve as advisors to political candidates and may even run for office themselves. Where such participation is undertaken solely in an individual capacity without making any use of Pratt’s resources, the activity should not be attributed to Pratt for purposes of the prohibition on political activity and campaign participation. However, Pratt must make positively sure that its resources are not inappropriately directed to activities in support of or in opposition to political candidates.

As such, if you choose to participate in political activities or political campaigns in an individual capacity, the following rules must be adhered to:

• If you desire to participate in campaign or political activities during normal working hours, you must request and obtain permission to take leave without pay to do so.
  
• You may not use Pratt’s letterhead in connection with any campaign or political activities. In addition, Pratt’s support services or supplies (secretarial, photocopying, messenger, etc.) cannot be used in connection with political or campaign activities.
  
• Pratt funds cannot be used to make donations to political campaigns or to purchase tickets to fundraising events of any kind. If you choose to make a donation to a political campaign or purchase tickets to a politically-related fundraising event, you must use your own funds and cannot be reimbursed by Pratt.

If you choose to individually participate in a political campaign, you must notify the campaign in writing, with a copy to Pratt’s Vice President for Institutional Advancement, that you are participating as a private citizen and not as a representative of Pratt Institute. Pratt will retain the letter in your file. In addition, you should seek, to the extent possible, to minimize any references to your employment status with Pratt as you participate in the campaign. Further, you must use your home address for all campaign-related mailings.

Adherence to these guidelines will help to avoid possible tax implications and loss of Pratt’s Section 501(c)(3) tax-exempt status.

V. Penalties for Impermissible Political Activity
Loss of Tax-Exempt Status for Pratt. If Pratt or its administration, faculty or staff members participate in or intervene in any political campaign on behalf of or in opposition to any candidate for public office using Pratt’s name or resources, Pratt may lose its classification as a 501(c)(3) tax-exempt organization. Such a loss would prove detrimental to Pratt and its community in general, as Pratt would be subject to Federal income tax and, perhaps most importantly, donors would no longer be able to make tax-deductible contributions to Pratt.

Imposition of Taxes on Pratt and its Employees. An initial tax of 2½% is imposed by the IRS on any Pratt manager (including directors and officers) who agrees to make a political expenditure. The IRS will also impose excise taxes on Pratt for amounts expended on certain political activities. The IRS imposes an initial excise tax of 10% on the amount of any political campaign expenditures spent by Pratt or one of its employees using Pratt’s name, money or other resources. Finally, the IRS imposes additional taxes if the impermissible political expenditures are not corrected within a specified time period.

Discipline by Pratt. Individuals who violate these Guidelines for Participation in Political Activities and Political Campaigns will be subject to appropriate disciplinary action. Depending on the severity, and/or frequency of the violation(s), such discipline can range from a written warning to dismissal from the Institute.

VI. Conclusion
Pratt’s exemption from Federal taxation under Section 501(c)(3) of the Internal Revenue Code is a benefit to the entire Pratt community, as it allows Pratt to be free from paying Federal income tax and, perhaps most importantly, allows donors to make valuable, tax-deductible contributions to Pratt. As such, the Institute urges you to take these Guidelines seriously as you embark on different political activities. Finally, if you have any doubts as to what you can and can not do in your capacity as a Pratt employee, please consult with the Vice President for Institutional Advancement before proceeding further.