Tax Exempt Organizations FAQs

The following questions are intended to assist in determining whether the provisions of Tenn. Code Ann. § 2-10-132(b) are implicated and whether registration and reporting is required. Please read through all questions carefully.
If the statute does not apply, registration and reporting are not required.
If the statute is triggered, the tax exempt organization should immediately file a Certification of Responsible Individuals for Certain Tax Exempt Organizations form and should begin filing campaign finance disclosure reports. For more information on how to answer any question, please contact the Registry at 615-253-5370 or lauren.topping@tn.gov

1. Was the communication at issue paid for by a tax-exempt organization under US IRS Code § 501(c)(4), 501(c)(5), or 501(c)(6)?

a. If no, the statute does not apply.
b. If yes, continue to the next question.

While a “communication” is not defined by law, the Registry considers the following items to be within the intended scope of the law: mailers, push cards, door hangers, billboards, campaign signs, any form of advertising (regardless of the media), commercials (radio, TV, or otherwise), social media posts, social media videos, email messages, phone calls, phone messages, and text messages. This is not an exhaustive list.

2. Does the communication contain the name of or visually depict a candidate for state public office in a primary or general election?

a. If no, the statute does not apply.
b. If yes, continue to the next question.

3. Did the expenditure or communication occur within sixty (60) days immediately preceding a primary or general election in which the named or visually depicted candidate appears on the ballot?

a. If no, see Question 4.
b. If yes, continue to Question 5.

If the expenditure is paid or communication occurs during the 60 days preceding the election, registration and reporting are required. If both the expenditure and the issuance of the communication occurs prior to the 60-day period, registration and reporting are not required, provided that the communication was not actively promoted or distributed by the organization within the 60-day period.

4. Was the communication actively promoted or distributed by the organization within the applicable 60-day period in which the named or visually depicted candidate appears on the ballot?

a. If no, the statute does not apply.
b. If yes, continue to the next question.

Whether the communication was “actively promoted” or “distributed” during the 60-day period will be a fact specific determination made on a case-by-case basis. However, in general, the following guidelines apply:
• An organization is not responsible for “shares” or “re-posting” done by third parties, and this activity does not constitute “active promotion”.
• A press release, editorial, graphic, etc. which is posted on an organization’s website is not considered to be “actively promoted” or “distributed” by virtue of the fact that the item remains on the organization’s website during the 60-day period, absent other circumstances indicating an active effort by the organization to encourage the public to view the item.
• Any physical communication that is placed in public view for an extended period of time, such as a billboard, campaign sign, or other items of a similar nature, is considered to be actively distributed during the 60-day period even though placed prior to the commencement of the period. Therefore, this activity would require registration and reporting.

5. Did the organization expend an aggregate total of at least $5000 in organizational funds, moneys, or credits for the communication? “Aggregate total” includes all development, printing, mailing, etc. costs specifically applicable to the communication.

a. If no, the statute does not apply.
b. If yes, continue to the next question.

In calculating the cost of a communication, all development and distribution costs, including but not limited to design, printing, mailing/shipping supplies, postage, etc., specifically attributable to the communication should be included in the determination of whether the $5,000 threshold is met; however, it is not necessary to include costs which would have been incurred regardless of whether the communication were made (i.e., staff pay, office space, office equipment, etc.).

6. Was the communication sent by any membership organization solely to its members, employees, or to any person(s) who has expressly consented to receiving communications from the organization?

a. If yes, the statute does not apply.
b. If no, continue to the next question.

7. Was the communication made ONLY to an official in the legislative branch or an official in the executive branch during any session of the general assembly?

a. If yes, the statute does not apply.
b. If no, the statute is triggered, and the organization is required to register and report expenditures.

8. If a tax exempt organization is required to file campaign finance disclosure statements by Tenn. Code Ann. 2-10-132(b), is the organization required to report contributions received by the organization?

No. Tenn. Code Ann. 2-10-132(b)(2) specifically states that these tax exempt organizations are not required to report any form of contributions.

9. If a tax exempt organization is required to file an interim report by Tenn. Code Ann. 2-10-132(b), is the organization required to report contributions received by the organization?

No. A tax exempt organization that is required to file an Interim Report pursuant to Tenn. Code Ann. 2-10-132(b) is NOT required to report contributions received. Therefore, when completing the Interim Report, these organizations should simply fill in Questions 4-6 with “N/A”.

10. What are some examples of circumstances where Registration and Reporting are NOT required?

• Where the tax-exempt organization is not one of the specified types of tax-exempt organizations (i.e., 501(c)(3) organizations).
• Where the named or depicted candidate is a candidate for local office.
• Where the named or depicted candidate is not on the ballot or up for re-election.
• Where the communication does not contain the name or likeness of any particular candidate in a state election.
• Where the communication was paid for by a PAC associated with the tax-exempt organization.
• Where the communication occurred more than 60 days prior to an election and there has been no active promotion or distribution of the communication by the issuer during the 60-days prior to the election. (See above.)
• Where the cost of the communication does not equal or exceed $5,000.

11. If Registration and Reporting are required, what are the requirements?

Any organization that meets the requirements outlined above must file a Certification of Responsible Individuals form with the Registry as soon as the organization becomes aware that it will be required to file campaign financial disclosure reports under these rules. This certification form is available on the Registry’s website and may be submitted by U.S. mail, email, by fax, or by hand delivery. For submissions by email or by fax, an original copy should also be submitted by U.S. mail.

Once registered, the organization must file campaign financial disclosure reports on the standard quarterly, pre-election, and interim report timeline for the remainder of the election year in which registration is required. While the Registry will provide pre-report notices to remind all filers of the filing deadlines for the quarterly and pre-election reports, it is ultimately the responsibility of all filers to ensure that all required reports are timely filed. No pre-report notices will be issued ahead of the Interim Reporting period.
For quarterly and pre-election reports, the organization should use the Campaign Financial Disclosure Statement For Certain Tax-Exempt Organizations form available on the Registry’s website. For the year 2022, these reporting time frames are as follows:

Pre-Primary
Due 7/28/2022
Pre-Primary disclosures cover the period July 1, 2022 through July 25, 2022

3rd Quarter
Due 10/11/2022
3rd Quarter disclosures cover the period July 26, 2022 through September 30, 2022

Pre-General
Due 11/1/2022
Pre-General disclosures cover the period October 1, 2022 through October 29, 2022

4th Quarter
Due 1/25/2023
4th Quarter disclosures cover the period October 30, 2022 through January 15, 2023

For Interim Reports, the organization should use the interim report form available on the Registry’s website. (See above for additional details regarding the Interim Report.) However, these organizations are NOT required to report contributions received. Therefore, when completing the Interim Report, these organizations should simply fill in Questions 4-6 with “N/A”.