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Abstract: 

Among the categories of “taxable expenditure” that will subject a private foundation to penalty tax under section 4945 is the following (in IRC §4945(d)(2))—any amount paid or incurred “. . . to influence the outcome of any specific public election, or to carry on, directly or indirectly, any voter registration drive.” This provision has a rich history, for several of the congressmen who considered and eventually helped enact the Tax Reform Act of 1969 had experienced opposition from candidates whose election campaigns were assisted by foundation- sponsored voter registration drives aimed at registering members of underrepresented minority groups. After much negotiation, a compromise exception was added to the voter registration provision in IRC §4945.

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