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Thursday, July 03, 2008

Colorado Priests Not Allowed to Make Donations to Candidates

According to the Denver Post, Priests and deacons serving in the Archdiocese of Denver will be prohibited from donating money to political candidates and from making endorsements under an upcoming directive from Archbishop Charles Chaput. The directive states that clerics "may not publicly participate or endorse political campaigns or initiatives, or publicly affiliate themselves with groups whose primary purpose is to do so." This is of interest because it seems that they would not be allowed to donate in the capacity as a private citizen, separate from their occupational role as a priest. While charities, educational institutions and religious organizations cannot make donations to campaigns, individuals can do so in a personal manner, and not on behalf of an organization.



Posted by Amanda Adams, 02:01:56 PM



Monday, June 30, 2008

TIGTA Releases Audit of Political Activities Compliance Initiative (PACI)

The Treasury Inspector General for Tax Administration (TIGTA) has released an audit report addressing improvements in educating and enforcing the prohibition against political activities for tax-exempt organizations. The purpose of the audit was to determine the effectiveness of the Internal Revenue Service's (IRS) Political Activities Compliance Initiative (the Initiative). The audit addressed how effective the IRS is in addressing alleged incidences of political campaign intervention and "whether actions had detected repeated campaign intervention by previously identified organizations."

The audit found that the Initiative could be improved "to ensure that tax-exempt organizations receive timely notification that they might be involved in prohibited political activity. Also, the EO function needs to clarify why certain referrals are not included in the Initiative."

Recommendations laid out in the audit include :

  • ensure that all referrals of potentially prohibited political intervention are reviewed in a timely manner.
  • Improve the consistent understanding of prohibited political intervention criteria.

The IRS expects an active 2008 election cycle, and will start the Initiative even earlier this year. To read the full report, click here.



Posted by Amanda Adams, 05:57:59 PM



Friday, June 27, 2008

Internet Evangelist Ready to Challenge IRS Investigation

In June of last year, Americans United for Separation of Church and State (AU) requested that the Internal Revenue Service (IRS) investigate Bill Keller for possibly violating the political campaign intervention prohibition for tax exempt organizations. Keller has a call-in show on a Tampa television station and a Web site called Liveprayer.com. On May 11, 2007 Keller warned listeners; "if you vote for Mitt Romney, you are voting for Satan!" Now, the public is aware that the IRS is in fact investigating the case. According to the St. Petersburg Times, "the IRS gave him a week to assemble documents and videos of his television programs. . . Keller said he is prepared to fight if his ministry loses its tax-exempt status."



Posted by Amanda Adams, 03:04:47 PM



Friday, June 13, 2008

ABA Tax Section Offers Recommendations for IRS Guidance Priority List

The American Bar Association Section of Taxation recommended guidance to be included in the 2008-2009 Treasury Department Internal Revenue Service (IRS) guidance priority list. The section asked for guidance in a range of practice areas including exempt organizations. Among many other recommendations, the request included guidance on "acceptable methods for determining whether an organization is conducting political activities (including both candidate campaign intervention and improper private benefit to partisan interests) as its primary activity (consistent with section 527 exemption), or as a less-than-primary activity (consistent with non-charitable section 501(c) exemption)."

OMB Watch filed comments on IRS guidance priorities urging the creation of a bright line definition of partisan intervention in elections.



Posted by Amanda Adams, 01:12:42 PM



Thursday, June 12, 2008

Americans United Ask IRS to Investigate Church in Minnesota

Americans United for Separation of Church and State (AU) have asked the Internal Revenue Service (IRS) to investigate a Minnesota church whose pastor declared that Christians cannot vote for either Senator Hillary Clinton (D-NY) or Sen. Barack Obama (D-IL) in the presidential election. Pastor Gus Booth said in a May 18 sermon at Warroad Community Church in Warroad, MN, that Christians "cannot support Hillary Clinton or Barack Obama. Both Hillary and Barack favor the shedding of innocent blood [abortion] and the legalization of the abomination of homosexual marriage."

The Warroad Pioneer, a local weekly newspaper covered the sermon under the headline "Local pastor uses scripture to oppose presidential candidates Clinton and Obama." Booth sent the paper's article to both AU and the IRS. Americans United's mission is to preserve the separation of church and state as guaranteed by the constitution to ensure religious freedom for Americans, according to its Web site. According to AU's press release, the group also received an e-mail from the pastor noting that he had used his pulpit for partisan purposes. The email stated; "I am writing you to let you know that I preached a sermon in my church on Sunday, May 18, 2008, that specifically addressed the current candidates for President in the light of the Bible,' Booth wrote. 'As you can see from the attached newspaper article, I specifically made recommendations as to who a Christian should vote for."

In the press release, Rev. Barry W. Lynn, AU executive director, "called Booth's actions a flagrant violation of federal tax law. Churches and other tax-exempt organizations are free to address moral issues but are not allowed to engage in campaign intervention."



Posted by Amanda Adams, 02:08:48 PM



Monday, June 02, 2008

AU Asks for IRS Investigation of Christian Businessmen's Connection in WA

Americans United for Separation of Church and State (AU) announced May 29 that it has asked the Internal Revenue Service (IRS) to investigate possible political fundraising at the Takoma, Washington branch of the Christian Businessmen's Connection. The group hosted Republican gubernatorial candidate Dino Rossi at a May 21 dinner where fundraising envelopes were reportedly distributed.

See the AU press release here.

Posted by Kay Guinane, 05:04:19 PM



Wednesday, May 21, 2008

Pastor's Endorsement Did Not Constitute Election Intervention

Pastor Wiley Drake of First Southern Baptist Church in Buena Park, CA has reportedly been cleared by the Internal Revenue Service (IRS) of allegations that he violated the ban on election intervention. Drake made it public that he was being investigated by the IRS in February for endorsing presidential candidate Mike Huckabee in a press release on his church's letterhead and on his radio program.

The IRS letter announcing that he is no longer under investigation, and did not violate the tax code, was provided to local media. The letter states; "the press release date August 11, 2007 was a personal endorsement by the church's pastor . . . sent from Rev. Drake's personal email account and sent to personal acquaintances and was not sent to any of the church's congregants. . . . Based on these facts, the IRS has concluded that Buena Park First Southern Baptist Church did not engage in prohibited political campaign intervention in violation of the requirements of IRC section 501(c)(3)."

Drake's counsel was from the Alliance Defense Fund (ADF) and is part of ADF's "Pulpit Freedom Sunday".



Posted by Amanda Adams, 05:54:29 PM



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




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