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Advocacy Blog
Tuesday, August 07, 2007
Press Coverage of OMB Watch Panel
The Friday Aug. 3 OMB Watch panel on the pros and cons of an Internal Revenue Service (IRS) bright line rule for campaign activities for charities and religious organizations has gained some press attention. From BNA Money and Politics: ($$)
During an OMB Watch forum on the pros and cons of bright line rules for campaign activities, attorneys said they are often left not knowing how to advise their clients on taking positions on political candidates, other than to say "be wary," and that caution is keeping some charities from achieving their core mission. The panel suggested that the nonprofit sector should come together to formulate draft rules to present to IRS that would make clear that exempt organizations cannot lose their tax exemption for engaging in prohibited political activity, although they could still be subject to excise taxes if they cross the line.
Friday's discussion successfully prompted a constructive discussion on whether the nonprofit sector would benefit from a bright line rule that defines what is and is not prohibited partisan intervention in elections. Four lawyers who specialize in nonprofit issues discussed these issues in great detail and discussed the problems that arise with the current "facts and circumstances" test which allows the IRS to apply their interpretation of the standard on a case by case basis. A suggested strategy was for the nonprofit sector to put forth and promote a bright line test because the IRS is unlikely to provide clarity otherwise. "The time is ripe for a small group of charitable practitioners to develop a draft rule referencing Internal Revenue Code Section 4965 and Section 162, Marcus Owens, an attorney with Caplin & Drysdale, said." The Wisconsin Right To Life Supreme Court decision was also addressed and its possible implications for 501(c)(3) organizations.
And from the coverage in the Chronicle of Philanthropy: ($$) "But panelists at an Aug. 3 forum organized by OMB Watch, a Washington advocacy group, said the tax agency's increased enforcement is stifling legitimate political discussions by nonprofit groups because the agency has yet to offer clear definitions about what is off limits. 'We really don't know how to comply with the ban on partisan political activities,' said Kay Guinane, director of OMB Watch's Nonprofit Speech Rights Program. 'The uncertainty surrounding these rules makes our job difficult."
And read this article on the panel from the latest Watcher.
Posted by Amanda Adams
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