During the 2004 campaign cycle, the "electioneering communications" rule created in the Bipartisan Campaign Reform Act of 2002 (BCRA) did not apply to charities and religious organizations exempt under Section 501(c)(3) of the tax code. The Federal Election Commission (FEC) had initially exempted such entities due to their nonpartisan nature. The FEC withdrew the exemption in December 2005, however, after a federal court held its justification for the exemption inadequate. The FEC rule bars general references to federal candidates, so that a grassroots broadcast message during the banned period asking people to "call your Senator" to support or oppose legislation violates the rule.
In asking for quick resolution of the case, WRTL noted upcoming March primaries in Texas and Illinois. In April, an additional 10 states are scheduled for primary elections. As it stands, nonprofits in Texas and Illinois are now barred from broadcasts referring to federal candidates. Nonprofits in other states are also now barred from referring to federal candidates in Texas. A complete election schedule is available on NPAction.org.
WRTL, a 501(c)(4) social welfare organization, challenged the constitutionality of the "electioneering communications" rule after being instructed to discontinue grassroots lobbying ads during the 2004 election season. In January, the Supreme Court allowed the challenge and sent the case to the lower court to determine if an exemption is necessary based on the facts of the case.