Do churches have any reason to fear the wrath of the Internal Revenue Service
in this years election season for distributing voter guides?
It depends on who one asks.
Neutral guides are not a problem, American Center for Law and Justice leaders
insist.
Do churches have any reason to fear the wrath of the Internal Revenue Service
in this years election season for distributing voter guides?
It depends on who one asks.
Neutral guides are not a problem, American Center for Law and Justice leaders
insist.
Churches should beware, an Americans United for Separation of Church and State
official counters.
What is not in question is that the issue is one that must be taken seriously.
For instance, a recent Internal Revenue Service memorandum to tax-exempt organizations
warned churches and other charities to be careful about their education efforts
during this falls campaigns.
Organizations that are tax-exempt under section 501 (c) (3) of the tax code
“are prohibited from participating or intervening in any political campaign
on behalf of, or in opposition to, any candidate for public office,” the
memo said. “These organizations cannot endorse any candidates, make donations
to their campaigns, engage in fund raising, distribute statements or become
involved in any other activities that may be beneficial or detrimental to any
candidate.”
Forums or debates sponsored by tax-exempt organizations are permitted if they
do not demonstrate a preference for or against a candidate, the memo pointed
out.
And that is more than just a matter of naming names or targeting particular
political parties, the memo pointed out.
Indeed, the Internal Revenue Service cited a 1988 incident in which the Association
of the Bar of the City of New York was barred from 501 (c) (3) status even though
its published ratings of candidates were nonpartisan. The incident shows that
activities that encourage persons to vote for or against particular candidates
even on a non-partisan basis violate tax code regulations, the memo explained.
Americans United Executive Director Barry Lynn said the memo serves as a needed
reminder to churches. Lynn specifically warned churches to avoid Christian Coalition
voter guides. “Pastors should see this statement as one more reason not
to distribute Christian Coalition voter guides, …” Lynn said. “Handing
out materials that steer voters toward certain candidates can jeopardize your
tax exemption.”
Lynns assertion is off-base, and “thats a very nice way of
saying it,” countered Mark Troobnick, senior litigation counsel with the
American Center for Law and Justice. Like the Christian Coalition, the center
was founded by television evangelist and prior presidential candidate Pat Robertson.
A church may distribute a voter guide as “long as it presents the response
of … candidates fairly and accurately” and does not endorse a candidate,
Troobnick said.
Troobnick acknowledged the IRS has disputed with a wide variety of groups concerning
their voter guides. But he said he is unaware of any specific case based solely
on voter guides in which the IRS has threatened to revoke the tax-exempt status
of a church.
On its Internet site, the American Center for Law and Justice provides the
following guidelines for voter guides:
All viable candidates must be included.
Statements on candidates must be unbiased.
The candidates positions on a broad range of issues should be
included.
Candidates cannot be endorsed nor individuals instructed whom to vote
for or against.
Editorial comments grading a candidates positions may not be included.
The Christian Coalition has been criticized on several occasions by Lynn. Nevertheless,
the group plans to distribute 70 million voter guides this fall, a spokesperson
said.
During the last two decades, a range of groups have published and distributed
voter guides. They typically consist of the candidates positions on several
issues of interest to each organizations constituency. Christian Coalition
and other pro-family group have circulated their guides in churches.
American Center for Law and Justice Chief Counsel Jay Sekulow admitted church
involvement in the political process “can be a confusing area of the law.”
Sekulow offered three rules related to such involement:
“Endorsing or opposing a candidate for office (verbally or in print)
is off limits and should not be undertaken by your church.
“Neutral voter guides are fine.
“Lobbying and taking a stand on legislative and ballot measures
is fine, just keep it at an insubstantial amount in terms of both money and
time expenditures.”
What constitutes a substantial amount has varied depending on the court, Sekulow
explained. Some courts have set the standard at 5 and 10 percent of total expenditures
used for influencing public policy, he said.
Other courts have utilized a “balancing test” based on the tax-exempt
organizations purposes to determine whether it was using a substantial
portion of “its objectives (not just expenditures)” to seek to influence
legislation or a ballot initiative, Sekulow added.
“For the average church, taking a position on one or two legislative or
ballot propositions (a year) is highly unlikely to constitute a substantial
portion of its activities and expenditures,” he suggested.
Church involvement in politics gained considerable attention in 1995, when
a small church in New York became the first legitimate church to be stripped
of its tax exemption by the Internal Revenue Service. The IRS ruled against
The Church at Pierce Creek in Vestal, N.Y., after an investigation of advertisements
in USA Today and The Washington Times newspapers four days before the 1992 presidential
election between Bill Clinton and George Bush.
In those issues, the church and others sponsored a full-page advertisement
under the title “Christian Beware.”
The ad warned Christians not to “put the economy ahead of the Ten Commandments.”
It also asked how Christians could vote for Clinton, citing his support of abortion,
homosexual rights and condom distribution in schools, as well as Scriptures
opposing such positions.
The ad also included in small print a notice that tax-deductible gifts to help
pay for it would be accepted.
In May of this year, a U.S. Court of Appeals unanimously upheld a federal judges
1999 decision supporting the Internal Revenue Service ruling against the church.
(BP)