Under Internal Revenue Code section 501(c)(3), certain public charities are exempt from income taxation. As a condition to this benefit, such organizations are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, a candidate for public office. The statute and the regulations promulgated thereunder, however, do not clearly define what activities are prohibited. This lack of clarity, combined with the U.S. Supreme Court’s protection of the political speech rights of other business organizations, has led many commentators to question section 501(c)(3) on constitutional grounds. Others have criticized the statutory scheme for creating inefficiencies in enforcement and compliance efforts. This Note examines the constitutional and policy questions surrounding section 501(c)(3), catalogues existing proposals to change it, and proposes its own changes to cure those deficiencies. It concludes that a bright-line rule should be used to determine when revocation of tax-exempt status is appropriate, and that revoked entities should be permitted to file for exemption under section 501(c)(4).