The American Political Science Association released a report this month, warning that democracy in the United States faces profound threats because "disparities of income, wealth and access to opportunity are growing more sharply in the United States than in many other nations, and gaps between races and ethnic groups persist."

On June 21 the Senate Finance Committee published a Staff Discussion Draft of Proposals for Reforms in the Tax-Exempt Accounting and Best Practices that is "based on staff investigations and research as well as proposals from practitioners." The document notes that specific proposals are meant to generate comments and additional suggestions "as the Finance Committee continues to consider possible legislation." It focuses on changes for nonprofits, while other legislative proposals focus on deductibility issues and abuses by donors.

The House Ways and Means Committee rejected a provision inserted into the jobs bill by House Republican leadership on June 14. It would have allowed religious organizations to violate the ban on partisan election activity without losing their tax-exempt status and was introduced shortly after the Bush campaign was criticized for e-mailing messages to supporters seeking help with re-election campaigns by recruiting "friendly congregations." Those messages were sent the same day the President announced expansion of his faith-based initiative, including $1.1 billion in grant funds.

* June 22 hearing on nonprofits at the Senate Finance Committee * House Bill on IRS Rollovers * Emily's List asks the Federal Election Commission to reconsider its controversial Advisory Opinion 2003-37 Senate Finance Committee Hearing