Falwell Ministries Accused of Partisan Electioneering

In early July Jerry Falwell Ministries, a 501(c)(3) organization, posted an endorsement of President George Bush on its website and circulated it via an email newsletter, Falwell Confidential. Both messages included a solicitation of donations and link to a conservative political action committee, the Campaign for Working Families. Americans United for Separation of Church and State filed a complaint at the IRS July 15 requesting an investigation. On July 27 the Campaign Legal Center filed a complaint at the IRS alleging violation of the prohibition on intervention in elections for 501(c)(3) organizations and another complaint at the FEC alleging illegal general public endorsement and solicitation of contributions by a corporate entity. Falwell responded that the communications were paid for by a 501(c)(4) entity, the Liberty Alliance and that he was speaking as an individual and publisher and is legally entitled to express his views. However, the communications were made using corporate facilities, including the groups' shared website, which does not clearly distinguish between the 501(c)(3) and 501(c)(4) entities. It bears the name of the Jerry Falwell Ministries, the 501(c)(3), but in the About Us section says it is a project of the Liberty Alliance, the 501(c)(4). The Campaign Legal Center asked the IRS to "use its authority under Section 7409 of the tax code to enjoin Jerry Falwell Ministries Inc. from engaging in further direct express endorsements of any candidates for public office."
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