Beginning in January 2005 the Federal Election Commission (FEC) will begin an intense seven-month series of proceedings to amend rules implementing the Bipartisan Campaign Reform Act of 2002 (BCRA) rejected by a federal court this fall, and take up new issues generated by this year's election. Among those with greatest impact on nonprofits will be expansion of regulation into Internet communications, reconsideration of the electioneering communications exemption for 501(c)(3) groups and party donations to nonprofits. At its Nov. 18 meeting the FEC approved a http://www.fec.gov/agenda/2004/mtgdoc04-105.pdf">schedule for the new rules along with a requirement for quick final action once public comment periods have closed. Nonprofits will be most impacted by consideration of:

• Party donations to tax-exempt organizations. The FEC staff have drafted a proposed rule for the Commissioners to consider at their Dec. 2 meeting. If the Notice of Proposed Rulemaking is approved, it will be published in the Federal Register for public comment likely in January.
• Internet exclusion from rules on coordination between campaigns and outside groups and the definition of a public communication. That proceeding will begin in March 2005.
• Electioneering communications. The FEC will consider exemptions for 501(c)(3) groups and documentary ads, as well as unpaid broadcasts. The federal district court overturned the unpaid broadcast exemption, but the FEC has appealed. This proceeding will begin in June 2005.

At the FEC meeting Vice-Chair Ellen Weintraub said substantive changes in the exemption for Internet communications are likely. Some of the other issues, such as the 501(c)(3) exemption for electioneering communications, were overturned on technical grounds and may not be radically changed. For information on the court decision being appealed see the Oct. 4 OMB Watcher. More background is also available on the FEC webpage on rulemaking proceedings.