Church Electioneering Provision Dropped from Jobs Bill The House Ways and Means Committee has dropped a provision (Section 692) that would have allowed religious organizations to violate the tax code's ban on partisan election activity up to three times a year without losing their tax-exempt status. At a June 14 review of H.R. 4520, Rep. Nancy Johnson (R-CT) offered an amendment, approved on a voice vote, that stripped Section 692 from the bill. She was supported by Reps. Amo Houghton (R-NY), John Lewis (D-GA), Charles Rangel (D-NY) and others. Last minute technical changes to Section 692 failed to correct the fundamental problems with the proposal. Advocates of legislation (H.R. 235) proposed by Rep. Walter Jones (R-NC) that would legalize partisan activity for religious organizations objected to Section 692 because it did not go far enough. Opponents, including OMB Watch, objected to unequal treatment of religious and non-religious 501(c)(3) organizations, creation of a new soft-money loophole and politicization of houses of worship. H.R. 235 is pending before the House Ways and Means Committee. THANKS to all of you who responded to our action alert on this issue. The public opposition to this proposal was forceful enough to stop it. The provision inserted into the jobs bill by House Republican leadership would have allowed religious organizations to violate the ban on partisan election activity without losing their tax-exempt status. It 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." Messages were sent the same day the President announced expansion of his faith-based initiative, including $1.1 billion in grant funds. As a result of press attention to the pending legislation, the IRS took the unprecedented step of sending a letter to all political parties reminding them that current law prohibits partisan activity by charities, including religious organizations. For background information on Section 692 and how it got into the jobs bill read http://www.ombwatch.org/article/articleview/2202/1/3/">Church Electioneering Provision Added to Jobs Bill. Also, see the full text of the OMB Watch letter to the Ways and Means Committee opposing Section 692. Bush Campaign Seeks "Friendly Congregations" To Aid Re-election Campaign In early June the Bush campaign sent 1600 emails to clergy and other individuals saying it is looking for "Friendly Congregations in Pennsylvania where voters friendly to President Bush might gather on a regular basis." It further states that the re-election campaign would like to distribute general information "to supporters." The campaign's email (see full text below) is part of a larger national effort. The Interfaith Alliance and Americans United for Separation of Church and State (AU) strongly criticized the action as encouragement to congregations to violate the tax code's ban on partisan electioneering by 501(c)(3) organizations. In a press release AU executive director Rev. Barry Lynn said "The last thing this country needs is a church-based political machine." Some conservative church leaders criticized the plan as well. Richard Land, president of the Ethics and Religious Liberty Commission of the Southern Baptist Convention was quoted by the New York Times as saying "If I were a pastor, I would not be comfortable doing that. I would say to my church members, 'We are going to talk about the issues, and we are going to take information from the platforms of the two parties about where they stand on the issues.' I would tell them to vote and to vote their conscience." Here is the full text of the Bush campaign email: "Subject: Lead Your Congregation for President Bush Dear [recipient]: The Bush-Cheney '04 national headquarters in Virginia has asked us to identify 1600 'Friendly Congregations' in Pennsylvania where voters friendly to President Bush might gather on a regular basis. In each of these friendly congregations, we would like to identify a volunteer coordinator who can help distribute general information to supporters. I'd like to ask if you would like to serve as a coordinator in your place of worship. We plan to undertake activities such as distributing general information/updates or voter registration materials in a place accessible to the congregation. If you are interested [contact info given]." Bush Expands Faith-Based Initiative On the same day the Bush campaign sent emails seeking support from "friendly congregations" in Pennsylvania, the president announced expansion of his faith-based initiative. At the first White House National Conference on Faith-Based and Community Initiatives he announced creation of new faith-based offices in the Departments of Commerce, Veterans Affairs and the Small Business Administration. He also noted expansion of funding for faith-based groups increased $144 million in programs funded by the Departments of Health and Human Services and Housing and Urban Development. A June 3rd Scripps-Howard News Service report said the administration also announced $1.1 billion in overall grants to faith-based organizations, with the president saying, "We’ve reached more than 10,000 faith-based and community groups with the message that we want your help, the federal government now welcomes your work." The simultaneous expansion of federal funding to religious organizations and recruitment of "friendly congregations" for the president's re-election campaign creates, at best, an appearance of exchange of federal funding for political support. At worst, it creates pressure on religious organizations that depend on federal funding for social service programs to enter the partisan political fray, putting their tax-exempt status at risk. IRS Letter To Political Parties Warns Against Involving Charities Increasing public attention to the religion and politics issue and the pending action in Congress prompted the Internal Revenue Service (IRS) to take the unprecedented step of sending a letter to national political parties warning against involving 501(c)(3) organizations in campaigns. The letter provides details about what nonpartisan activities are allowed for charities, and says the information is meant "to help you ensure that during this election season your committee and the candidates you support do not inadvertently or otherwise, jeopardize the tax-exempt status of any charitable organization." The letter says the IRS has a duty to continue enforcing current law, even while Congress is considering changes. In a press release IRS Commissioner Mark Everson said the letter was sent "because we want to ensure that the political committees and the candidates they support understand the current rules." For example, the letter noted that candidates can be invited to speak at events sponsored by 501(c)(3) groups, as long as all candidates are given the same opportunity, no favoritism is shown and no fundraising takes place. The IRS enclosed a copy of its April 28 advisory (IR-2004-59) Charities May Not Engage in Political Campaign Activities.