Pennsylvania bill would strip nonprofit corporations of the power to spend on elections and ballot questions
House Bill 2728, in committee since Aug. 5, would revoke the powers of every Pennsylvania corporation, nonprofit corporation and LLC and grant them again minus one: spending for or against candidates, parties or ballot questions. A Senate version announced Sept. 9 has not been introduced.
Harrisburg. Every nonprofit corporation formed under Pennsylvania law would lose the legal power to spend for or against candidates, political parties, political committees or ballot questions under House Bill 2728. Rep. Joe Webster, a Democrat from Montgomery County, introduced it on Aug. 5, and it went the same day to the House State Government Committee, which has not voted on it.
Sen. Tim Kearney, a Democrat from Delaware County, announced a Senate version on Sept. 9 and asked his colleagues to cosponsor it. The General Assembly's site showed on Sept. 28 that it had not been introduced.
What the bill would change
The bill revokes the general powers of every business corporation, nonprofit corporation and limited liability company and grants them again, "excluding any power to directly or indirectly engage in election activity or ballot question activity." That means paying, contributing or spending money or anything of value to support or oppose a candidate, a party, a political committee or a ballot question. News coverage is exempt unless a party, a committee or a candidate controls the outlet.
An organization that spent anyway would forfeit its charter privileges, which the bill says include limited liability and tax credits and abatements. It could regain them after full disgorgement and a certification of future compliance, under rules the Department of State would write, and the attorney general could sue. The act would take effect 60 days after enactment.
Federal tax law already bars 501(c)(3) organizations from intervening in campaigns for or against candidates. But the IRS counts advocacy on a referendum or ballot initiative as lobbying, which a charity may do as long as it is not a substantial part of its activities. The bill would take that power away from Pennsylvania nonprofit corporations.
Supporters, critics and what comes next
Mr. Kearney wrote that because corporations are creations of state law, the state can define their powers, including those of corporations formed elsewhere that operate in Pennsylvania. Hawaii enacted a similar law in May, which the Grassroot Institute of Hawaii is challenging in federal court, and Montana voters will decide on one in November.
Carl Marrara, executive director of the Pennsylvania Manufacturers' Association, warned in remarks reported by Broad + Liberty of "potential restrictions on the ability of associations to represent their members publicly." Brian Rengert of the Pennsylvania Chamber of Business and Industry said he did not believe the bill would stop out-of-state organizations from taking part.
Mr. Webster said in August that he expected the House to pass the bill but that it might not reach Gov. Josh Shapiro this year, the Pennsylvania Capital-Star reported. He said the sponsors would then "come back in '27 and get this done."
About this story
501c3.help wrote this story from the sources listed with it, not from material an organization sent. Our editors approved it on Sept. 29, 2026. Stories in The Nonprofit Herald are free, and nothing is asked in return. Editorial rules.
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