PRESS STATEMENT

Media Contact: Kay Guinane, (202) 234-8494

Nonprofits Should Be Encouraged by IRS Decision to Drop NAACP Case
Finding of no violation in 2004 speech is a victory for nonprofit speech rights
Statement of OMB Watch
August 31, 2006

Today the NAACP announced that the IRS has found that it did not violate the ban on partisan electioneering for charitable groups when its chairman, Julian Bond, criticized several Bush administration policies during a speech given at its 2004 national convention. OMB Watch is encouraged by the outcome and believes now is the time to examine the IRS procedures that led to the controversial case.

This positive outcome should assure nonprofits that their right to comment on the issues of the day is recognized as protected by the U.S. Constitution. This right extends to criticism of elected officials for policies and official actions that are contrary to an organization's values, mission and policy agenda. Similarly, nonprofits have the right to commend elected officials for doing what they believe is the right thing. We commend the NAACP for vigorously defending nonprofits' free speech rights.

The entire NAACP debacle should be a learning moment for IRS officials. The investigation took an unconscionable amount of time - nearly two years. It cast a cloud over the NAACP's ongoing advocacy. It left the entire nonprofit sector wondering if its right to comment on the issues of the day was being summarily taken away. And it highlighted the practical problems that the vagueness of the law causes for all concerned, including the IRS.

Going forward, we encourage the IRS to re-examine its enforcement procedures, and to publicly assure charities and religious organizations that their right to comment on issues of the day and the actions of elected officials is not suspended during the election season.

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