"Charities should be encouraged to speak out on policy issues even when dissenting from the President's policies," said Gary D. Bass, OMB Watch executive director. Kay Guinane, co-author of the OMB Watch report cited the latest prominent example. "Election eve political intimidation of the NAACP is wrong and a misuse of government funds," she said. (See NAACP story this issue.)
OMB Watch's report describes the experience of a dozen other nonprofit organizations with what appear to be retaliatory audits, funding cuts and similar actions, by IRS and other federal agencies.
One example is IRS's auditing of the National Education Association (NEA) for political activities it is legally allowed to engage in, as the nation's largest teachers union, when paid for from a segregated fund. IRS also audited the Land Stewardship Project in Minnesota last year after it supported a referendum on the "pork checkoff" which favors factory farms to the detriment of small, family farms.