Nonprofit Speech Rights | Center for Effective Government

Report Examines Political Coordination of Tax-Exempt Organizations

A new study by the Campaign Finance Institute (CFI) examines the electoral and advocacy roles played by different types of nonprofit organizations, and suggests possible reforms.

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Religious Groups Ask IRS to Revisit Audit Procedures

On July 17, 2006 an attorney representing several religious organizations wrote to the IRS requesting that the agency revise its new procedures for initiating audits of religious groups. According to the letter, the process is inconsistent with First Amendment protections codified by Congress in 1984, and was implemented without pubic notice or comment. The letter is the latest in a series of public criticisms of the IRS approach to oversight of religious and charitable organizations, including a recent OMB Watch report.

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Report Finds IRS Program Could Hamper Free Speech for Organizations

A new OMB Watch report finds fault with the Internal Revenue Service (IRS) program to enforce the ban on partisan activities by charities. The report's most serious findings suggest that the IRS's Political Activities Compliance Initiative (PACI) threatens the constitutional rights of nonprofit organizations and churches to speak out on issues of the day. It also suggests that the IRS exaggerated the extent of noncompliance in an agency report on its enforcement efforts in 2004.

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Catholic Group Responds to IRS Complaint By Forming New Group

A Catholic anti-abortion group, Catholic Answers, recently announced it will form a new organization, Catholic Answers Action, after a 2004 complaint filed with the Internal Revenue Service (IRS) claimed its Voter's Guide for Serious Catholics was a partisan intervention in that year's election. The new group is a social welfare organization exempt under 501(c)(4) of the tax code, and is not subject to the ban on partisan activity that applies to charities and religious organizations under section 501(c)(3). It intends to publish a similar 2006 version of its voter guide.

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Nonprofits Sue Defense Dept. Over Surveillance

On June 14 the American Civil Liberties Union (ACLU) filed suit against the Department of Defense (DOD) on behalf if itself and six state affiliates over DOD's failure to respond to their Freedom of Information Act (FOIA) requests. The request seeks records DOD has collected on over two dozen groups critical of the administration's war policies.

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Lobby Reform Update: Shays, Meehan Introduce Bill, as Senate Reports on Charities Misuse

While the conference committee to reconcile House and Senate versions of lobby reform legislation remains in limbo, two House members have introduced a new, stronger lobby reform bill, and a Senate committee has called for an investigation into misuse of charities by Abramoff and others. New Shays-Meehan Bill On June 22, Reps. Christopher Shays (R-CT) and Martin Meehan (D-MA) introduced H.R. 5677, the Ethics and Lobbying Reform Act. The bill, an amalgamation of provisions supported by reformers that were left out of the House and Senate-passed bills, includes:

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Nonprofits Protest Barrier to Emailing Congress

A coalition of more than 100 nonprofits is protesting a new filter used by some congressional offices to block spam, arguing it also inhibits constituent communications. The filter, or "logic puzzle" as it is called, requires senders to answer a question before a message is sent, making it more difficult for online advocacy campaigns that use forms.

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FEC Won't Change 527 Rules This Year

The Federal Election Commission (FEC) on May 31 announced it will provide a better explanation and clear justification of its 2004 rule limiting regulation of 527 independent political committees. The move can in response to a court order that calling on the FEC to either explain the rule or open up a new rulemaking providing more limits. The timing for the FEC action is not clear.

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Federal Court Rules Against Taxpayer-Funded Religious Programs for Inmates

A federal judge has ruled that an evangelical Christian program operating in an Iowa state prison promotes religion with state funds, in violation of the Establishment Clause of the Constitution. The court ordered the program to reimburse the government $1.5 million.

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Lobby Reform Update

Although GOP leaders are promising a final lobby reform package by the July 4 recess, a group of Republican Senators has broken rank and is threatening to filibuster the lobby reform conference report if it includes a provision expanding regulation of independent 527 organizations.

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