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Friday, May 09, 2008

Group Seeks Court Test of IRS Electioneering Ban

The Alliance Defense Fund (ADF), an Arizona nonprofit, has started an effort to encourage ministers to "use their pulpits to preach about election candidates this September." 501(c)(3) nonprofits, including churches, are prohibited from endorsing or publicly opposing political candidates or intervening in candidates' elections. The group would like if one sermon prompts an Internal Revenue Service (IRS) investigation that becomes a court battle, leading towards an outcome ruling the tax provision unconstitutional.

The ADF press release states; "The new initiative will equip, protect, and defend pastors who wish to exercise their First Amendment right to openly discuss the positions of political candidates and other moral and social issues from the pulpit. Participating pastors across the country will deliver a sermon along these lines in their own churches Sept. 28."

The Wall Street Journal reports; "Alliance fund staff hopes 40 or 50 houses of worship will take part in the action, including clerics from liberal-leaning congregations. About 80 ministers have expressed interest, including one Catholic priest, says Erik Stanley, the Alliance's senior legal counsel."

Americans United for Separation of Church and State (AU) responded with a press release denouncing the initiative, saying the "Religious Right group's plan to ask churches to violate federal tax law on electioneering is deplorable."



Posted by Amanda Adams, 06:02:30 PM



Thursday, April 10, 2008

Florida megachurch may have violated ban on political campaign intervention

A church in Tampa, Florida has been accused of making illegal campaign contributors to Florida Governor Charlie Crist. According to the St. Petersburg Times, NBC News obtained an email in which staff members of Without Walls International Church — the largest church in Tampa — were directed to write checks out to Crist for his 2006 campaign. Florida state election records include several $500 donations to Crist within a few days after the email was dated, from individuals affiliated with Without Walls.

According to the original NBC report from April 4th, Without Walls is one of several churches currently under investigation by the Senate Finance Committee on allegations that church leaders improperly profited from church funds.

Without Walls has declined to comment on all the allegations.

501(c)(3) organizations are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, any candidate for public office. They cannot endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements, or become involved in any other activities that, directly or indirectly, may be beneficial or detrimental to any particular candidate.

For more information on the ban on political intervention by charities, see OMB Watch's Resource Center on the IRS Rules.






Wednesday, March 19, 2008

Lieberman Also Considers IRS Guidance to be Unclear

Senator Joe Lieberman (I-CT) wrote to the Internal Revenue Service (IRS) requesting clarification of its standards for investigating candidates' and elected officials' appearances at churches. Lieberman questioned why the IRS chose to investigate the United Church of Christ for possibly violating the ban on partisan electioneering with a speech by Senator Barack Obama (D-IL).

The letter states; "I find the Service's inquiry especially troubling because of the Service's inadequate guidance in this area. Publication FS-2006-17, which the Service issued in February, 2006, and posts on its website, states that candidates may be invited to speak at churches in their individual capacity, and that depending on the circumstances, such invitations can be granted 'without jeopardizing its tax-exempt status.'"

"But I am concerned about the chilling effect on legitimate activity by religious organizations that results from initiating a church tax inquiry without first satisfying the reasonableness standard, and I am further concerned by the lack of clear guidance in this area."



Posted by Amanda Adams, 05:54:08 PM



Monday, March 10, 2008

IRS Asked to Investigate Church; Is Church Electioneering Increasing?

Americans United for Separation of Church and State asked the Internal Revenue Service (IRS) to investigate Grace Community Church, a Houston church whose pastor issued a letter of endorsement for U.S. House of Representatives candidate Shelley Sekula Gibbs. The pastor's endorsement letter identifies himself as senior pastor of Grace Community Church. "I have pastured in the 22nd District for 24 years. It is not often I endorse a candidate for office. I want to know if they represent my values. I have thoroughly discussed the issues of life, marriage and family with Shelley over the years."

In the letter to the IRS, AU Executive Director Barry W. Lynn wrote, "Nowhere in the letter does Riggle state that he is speaking as a private citizen. . . . No attempt is made to distance the church from this endorsement. Although the IRS permits pastors to endorse candidates as private citizens, it cautions that pastors must not do so in their official capacity as congregational leaders."

A front page article in the Wall Street Journal ($$) discusses that Rev. Jeremiah Wright Jr., the pastor of presidential candidate Barack Obama's church, has frequently supported Obama during services. "Mr. Wright's and his successor's repeated enthusiastic promotion of their famous parishioner may be running afoul of federal tax law, which says churches can endanger their tax-exempt status by endorsing or opposing candidates for public office.

Scholars and attorneys say that a growing number of congregations are delving into issue advocacy and partisan politics, a trend dating back to the 1980s, when the religious right enlisted churches to fight abortion. An increasing number of complaints to the IRS over church politicking have triggered agency probes into both liberal and conservative religious groups.

In some instances, the church's ministers alluded to Sen. Obama without naming him. During a Trinity sermon observed by a Journal reporter on March 2, the Rev. Otis Moss III, the pastor, preached, "There was a non-Babylonian, a young man who heard the word of God and said, 'I have the audacity to hope!' Now the whole nation says, 'Yes, we can! Yes, we can! Yes, we can!'"



Posted by Amanda Adams, 03:43:49 PM



Thursday, February 28, 2008

IRS Investigating United Church of Christ for Obama Speech

On Feb. 26 the United Church of Christ published a statement revealing that the Internal Revenue Service (IRS) sent them a letter announcing it has launched an investigation into their tax exempt status because it says there is "reasonable belief" that the church violated the ban on partisan electioneering. At issue is a June 23, 2007 speech by Sen. Barack Obama (D-IL) at the church's 50th General Synod.

The IRS enforces the ban on partisan intervention in elections by 501(c)(3) organizations, which includes charities, religious and educational organizations, by applying a "facts and circumstances" test to each event. There are no set standards or clear definitions, so that groups that invite public officials to speak must make their best guess at the right way to go about it. OMB Watch has called on the IRS to develop clear standards so situations just like this can be avoided.

The following are among the "facts and circumstances" surrounding Obama's speech:

  • Obama was invited to speak in his capacity as a church member and elected official, a year before he became a presidential candidate
  • Before the speech church officials warned the crowd that the event was not about the campaign and no signs, buttons, leaflets or other campaign material would be allowed in the civic center where the event was held.
  • Obama campaign volunteers were not allowed into the civic center, but set up outside, presumably in public space
  • There were 60 speakers at the Synod, including Obama, who addressed the intersection of faith with their vocation .
  • Obama has been a member of Trinity United Church of Christ in Chicago for over 20 years.
  • Church leaders got legal advice before the event.

The church's statement denied wrongdoing, instead calling the investigation "disturbing" and likely to have "a chilling effect on every religious community." They have set up a legal fund to help defray the costs of the investigation, so that "money given for mission will not be needed to pay legal bills, instead of ministry needs."

Last September the Street Prophets blog reported that redacted IRS documents on the UCC Truths website revealed that a complaint about the Obama speech was filed with the IRS on August 2, 2007. The name of the complainant is blacked out. Church-state watchdog Americans United for Separation of Church and State had a different view in their June 25 blog statement, saying they saw no evidence that a violation had occurred, going on to note that "What happened at the UCC gathering is a lot different than some of the cases AU has reported to the IRS in the past. In those instances, there was a clear intent to intervene in a partisan race."

The UCC website has a list of news stories about the issue. You can also play the video of Obama's speech. The speech is also summarized in a June 24, 2007 New York Times article.

For backgroundn on IRS enforcement see our Resource Center: IRS Rules on Election Activities of Charities.

Posted by Kay Guinane, 06:07:19 PM



Thursday, February 14, 2008

IRS investigates pastor supporting Huckabee

The IRS is investigating a California pastor's involvement in the presidential campaign of Republican Mike Huckabee. Pastor Wiley Drake, of Buena Park First Southern Baptist Church in Buena Park, California received a letter from the IRS stating, "Because a reasonable belief exists that the Church has engage in political activities that could jeopardize its tax-exempt status as a church under section 501(a), this letter is notice of the beginning of a church tax inquiry described in IRC section 7611(a)."

The Alliance Defense Fund is serving as Mr. Drake's counsel in the matter.

Read more here






Friday, January 18, 2008

Request to Investigate Nevada Church

Americans United for Separation of Church and State (AU) have asked the Internal Revenue Service (IRS) to investigate a Nevada church for a possible endorsement of Democratic presidential candidate Barack Obama. According to the AU press release, "Obama spoke during services at the Pentecostal Temple Church of God in Christ in Las Vegas on Jan. 13 in what the Las Vegas Review-Journal described as a 'surprise appearance.'" A blog posting from mydd.com discusses the event. Reportedly, the pastor of the church said, "if you can't support your own, you won't get anywhere." Does this amount to an explicit endorsement?



Posted by Amanda Adams, 02:49:14 PM



Thursday, January 17, 2008

Church Challenges the IRS to an Investigation

In an open letter printed in the Wall Street Journal, Pastor Taylor of Calvary Assembly of God in Algoma, Wisconsin challenges the Internal Revenue Service (IRS) to investigate his church and a November 2006 sermon for possible campaign intervention. The letter in the Wall Street Journal was paid for by the Becket Fund for Religious Liberty, an interfaith, public-interest law firm. The Becket Fund's National Litigation Director Eric was quoted in BNA Money and Politics ($$) saying his law firm is basing its defense on the church autonomy doctrine that prohibits states from interfering with the way a church is governed.

They charge that the IRS is misinterpreting federal tax law to censor sermons about political figures and political issues. Under IRS rules, churches are not allowed to explicitly or implicitly endorse particular candidates for political office without risking their tax-exempt status, but the Becket Fund press release asserts that "clergy speaking to their congregations is not the same as a church, as a legal entity, endorsing a candidate."

The letter references the recent All Saints Episcopal Church case that ended without the church losing it tax-exempt status despite the IRS stating that they did in fact intervene in the campaign. "But now you've all but admitted that you can't enforce these rules against the All Saints Episcopal Church in Pasadena, California. We're happy to see that, after some hemming and hawing, you finally dropped your offensive investigation into that church."

Americans United for Separation of Church and State has responded, considering the letter "mocks the IRS and dares the federal agency to investigate his church for a supposedly political sermon he delivered in 2006. . . . the ad is based on inaccurate information and could lead unwary religious groups to violate federal tax law, encounter fines and lose their tax exemptions." And in response to the Becket Fund's allegation that the IRS will not enforce the rules, AU cites examples of IRS enforcement including weak ones such as written warnings from the IRS about political activity in 2004 and 2006.



Posted by Amanda Adams, 04:20:58 PM



Tuesday, September 25, 2007

IRS Ends All Saints Church Investigation

The LA Times reports that All Saints Episcopal Church in Pasadena, California has announced that the Internal Revenue Service (IRS) investigation which began June 2005 has now been closed. The IRS will not revoke the church's tax-exempt status because of a 2004 anti-war, anti-poverty sermon delivered by its former pastor Rev. George F. Regas on the Sunday before the 2004 presidential election, despite the IRS determination that "the Church intervened in the 2004 Presidential election campaign." The letter the IRS sent to All Saints says; "We note this appears to be a one-time occurrence and that you have policies in place to ensure that the Church complies with the prohibition against intervention in campaigns for public office."

The church has now asked the Treasury Department to investigate if the investigation was politically motivated and whether officials from the Justice Department had become involved in the matter.

The All Saints press release states; "Synagogues, mosques, and churches across America have no more guidance about how the IRS rules now than when we started this process over two long years ago. The impact of the letter leaves a chilling effect cast over the freedom of America's pulpits to preach core moral values. We have no choice but to demand clarification on this matter with the IRS."

BNA Money and Politics ($$) describes the investigation as, "a test case for freedom of the pulpit and a focal point of the debate over free speech in churches."



Posted by Amanda Adams, 11:03:28 AM



Thursday, August 16, 2007

AU Wants IRS to Investigate Southern Baptist Church in California for Church Electioneering

Americans United for Separation of Church and State (AU) filed a complaint with the Internal Revenue Service (IRS) asking for the investigation of the First Southern Baptist Church of Buena Park, California. AU Executive Director Barry Lynn said that the church's pastor, Dr. Wiley Drake, issued a news release on church letterhead Aug. 11 endorsing Republican presidential candidate Mike Huckabee which leaves the church at risk for violating federal tax law barring electioneering by non-profit groups. Drake also endorsed Huckabee on a church-affiliated radio show and featured a Huckabee campaign official. AU questions the relationship between the church and the radio show, given that they share the same telephone number indicating that resources are also shared. Read the AU press release and its complaint here.

"Use of church letterhead to endorse a candidate for public office appears to violate the provisions of federal tax law that prohibit non-profit intervention in political campaigns," Lynn wrote. "Drake's endorsement of a candidate on a church-based radio show raises the same concerns."

And the following day AU criticized the church pastor "who has urged followers to pray for the demise of staff members of the religious liberty watchdog group."



Posted by Amanda Adams, 11:12:13 AM



Monday, June 18, 2007

Group Calls on IRS to Investigate Catholic Bishop's Remarks for Political Intervention

Americans United for the Separation of Church and State (AU) have asked the Internal Revenue Service (IRS) to investigate the Roman Catholic Diocese of Providence, R.I., because of an article written by Bishop Thomas Tobin criticizing Republican presidential candidate Rudy Giuliani for his position on abortion. The article appeared in the diocese's official publication and said he would never support a candidate who supports legalized abortion. The IRS's recent Revenue Ruling 2007-41 states that in order for an organization "to remain tax exempt under section 501(c)(3), leaders cannot make partisan comments in official organization publications or at official functions of the organization."



Posted by Amanda Adams, 05:09:57 PM



Wednesday, June 06, 2007

While Candidates Publicize their Personal Religious Journeys, Faith Groups More Careful to Discuss Candidates

Religious oriented nonprofits and churches are sure to take heed of the similar headlines appearing in the press, such as, "Religion, politics go hand-in-hand in '08 race,". In light of the Internal Revenue Service (IRS) Political Activities Compliance Initiate (PACI) and its latest report on the 2006 cases, many groups may feel pulled in opposite directions. A ban on political activity by charities and churches becomes compounded when presidential candidates increasingly open up about their faith as a matter of importance to the public, and as a tool that guides them on views on policy and government.

The evangelical group Sojourners sponsored a candidate forum Faith, Values, and Poverty where candidates John Edwards, and Senators Hillary Clinton (D-NY) and Barack Obama (D-IL) spoke of their personal faith. The New York Times covered this event and how it has now become crucial for candidates to discuss faith and reach out to religious communities. "Democratic Sens. Hillary Rodham Clinton and Barack Obama have hired strategists to focus on reaching religious voters. Obama's campaign holds a weekly conference call with key supporters in early primary and caucus states whose role is to spread the candidate's message to religious leaders and opinionmakers and report their concerns to the campaign."



Posted by Amanda Adams, 04:19:01 PM



Friday, June 01, 2007

IRS Questions Political Activity of Kansas Church

The Wichita Eagle reports that the Internal Revenue Service (IRS) has asked Pastor Mark Holick of Spirit One Christian Center in Wichita Kansas to answer thirty one questions about political activities at the church. The questionable activities include the pastor distributing voter guides and messages on the church's marquee critical of candidates and their position on abortion. Holick has scheduled a news conference today at the church to discuss the issue. The IRS wanted to know whether or not the former Kansas Attorney General Phill Kline spoke at the church and if his campaign asked for the church's support. Holick reportedly answered no. In October, the IRS was asked to investigate churches for possible involvement in helping with Kline's re-election campaign. Holick was also questioned about his involvement with Kansans for Life, and in passing out voter guides in front of a Wichita church.

But Holick said he won't stop speaking out on issues such as abortion, even if it means naming politicians. "It's a clear violation of the First Amendment, the free exercise of religion, the free exercise of speech," said Holick, one of the most outspoken abortion opponents in the Wichita area.

In related news, the Washington Post reports that Americans United for Separation of Church and State (AU) wants the IRS to revoke the 501(c)(3) status of Bill Keller Ministries because of the statements he made about Mitt Romney. Keller has a call-in show on a Tampa television station and a Web site called Liveprayer.com. On May 11, Keller claims that he was making a spiritual statement when he warned listeners; "if you vote for Mitt Romney, you are voting for Satan!"



Posted by Amanda Adams, 11:23:30 AM



Tuesday, January 30, 2007

IRS Failing to Control Political Speech within Churches?

An op-ed in yesterday's USA Today "Turning a blind eye, IRS enables church politicking" disapproves of the way the IRS is handling a supposedly growing number of churches that do not comply with the ban on endorsing candidates or political parties. The article notes that 40 churches were investigated for activity during the 2004 election season and not one had its tax-exempt status revoked.

Instead, the IRS wrote advisories, warning citations that carry no punishment, or assessed excise taxes, the equivalent of light fines, on those churches. The IRS justifies this slap-on-the-wrist approach by claiming that it wants to bring churches into compliance with IRS rules rather than punish them.

Or, perhaps the IRS is indirectly allowing such behavior through inadequate guidance and enforcement, which this op-ed fails to consider. As OMB Watch has recommended; "Concrete guidance, bright line rules defining partisan intervention, and/or safe harbors should be considered so that charities can know what is and is not allowed."

The USA Today article lists churches that are currently under investigation. This includes the well-known All Saints Church in Pasadena California, which according to the author, should not be worried about losing its tax-exempt status based off of previous cases. However, a blog post from the Center for Competitive Politics (CCP) responded to that point.

All Saints has been incurring legal bills in connection with this investigation since 2004. And thanks to the hopelessly abstruse "facts and circumstances test" used by the IRS to evaluate political intervention, it is unlikely that the conclusion of the investigation will leave All Saints with any better idea of how to avoid investigation in the future, other than to avoid all discussion of political issues.

This blog post from moresoftmoneyhardlaw.com responds to both the CCP post and the USA Today article.



Posted by Amanda Adams, 04:31:01 PM



Friday, December 08, 2006

New Means to Enforce Church Politics

Attorneys Marcus S. Owens and Natalie E. Fay wrote an article titled, "Penalizing Instigators of Political Campaign Intervention." The authors suggest that in light of increased attention on IRS audits of tax-exempt groups who have engaged in campaign intervention, the IRS should redirect enforcement measures to the candidates who in fact encourage the misuse, particularly of churches. Owens and Fay describe how candidates entice a church's involvement through various examples, such as candidates who have openly included churches in their campaign strategy, leaving the churches vulnerable. Candidates are therefore benefiting from the work of a church or perhaps an appearance, but the church is violating tax-exempt laws and may or may not be investigated. Bob Bauer has written this in-depth blog entry on their article.

Politicians—such as those who press churches for appearances before their congregations—are inducing the prohibited political intervention and should also be called to account. Owens and Faye propose the use of a provision, Section 6700, that imposes penalties on any person—in this instance the politician—who "cause[s]" another to make false or fraudulent tax statements. "It is only fair," they write, "that the people who benefit from the proscribed activities be held accountable for their actions."



Posted by Amanda Adams, 12:34:00 PM




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