On June 25, the U.S. Supreme Court announced its decision in Federal Election Commission vs. Wisconsin Right to Life, Inc., ruling 5-4 that the federal electioneering communications ban is unconstitutional when applied to genuine issue ads. The case challenged a provision in the Bipartisan Campaign Reform Act of 2002 (BCRA) that bars corporations, including nonprofits, from paying for broadcasts that mention federal candidates 60 days before a general election or 30 days before a primary (known as the blackout period). Though the Court ruled in favor of groups that run issue ads during elections, the debate will likely continue throughout the upcoming presidential election and beyond.

On June 8, the Internal Revenue Service (IRS) released a report on the initial results of its 2006 program enforcing the ban on partisan electioneering by charities and religious organizations. The same day, it also released Revenue Ruling 2007-41, which provides guidance nonprofits can rely on in planning permissible voter education and mobilization activity. The results of the enforcement program to date show a continued low level of violations.

The long-running debate over whether grassroots lobbying broadcasts should be exempt from the federal ban on "electioneering communications" may finally be resolved in 2007. On Jan. 19, the Supreme Court agreed to hear Federal Election Commission v. Wisconsin Right to Life during its current term, making a final decision before the 2008 elections likely. The case challenges the McCain-Feingold campaign finance rule barring corporations, including nonprofits, from paying for broadcasts that mention federal candidates 60 days before a general election or 30 days before a primary. The Supreme Court decision is likely to determine how the Federal Election Commission (FEC) uses its power to create exemptions to the rule and may generate action in Congress as well.