CAE Pop Quiz!

Once a month, BOLD Times features a CAE question. See all the questions and correct answers below. The question from the most recent issue of BOLD Times is listed first. You can read the archives of BOLD Times here, but you must be a Forum member to do so! Not a member? Join today!

QUESTION | APRIL 2024

The board chair of a 501(c)(3) organization has asked the chief staff executive (CSE) to establish a political action committee. The CSE’s first step should be to:

A. establish goals for the political action committee

B. consult legal counsel

C. explain that the political action committee is illegal

D. conduct a feasibility assessment

ANSWER

Correct answer: C.

While many associations conduct lobbying efforts to advocate for their industry, organizations that hold 501(c)(3) status may not conduct substantial activities that attempt to influence legislation. It’s not illegal for a 501(c)3 to do some lobbying; influencing legislation just can’t be a substantial part of the organization’s business. A political action committee’s entire purpose is to raise money to influence elections or legislation. Therefore, developing such a committee is illegal for a 501(c)(3).