Update on Church Electioneering

The corporate tax bill has been sent out of conference without provisions from the "Free Speech Restoration Act," which would have allowed churches to endorse candidates and fund partisan electioneering activities. However, that has not stopped a rash of churches from directly or indirectly endorsing candidates this election season.

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FEC Appeals Decision Overturning Reform Rules

The Federal Election Commission moved Oct. 1 in the U.S. District Court for a stay of the court's ruling holding unlawful various FEC implementing regulations for the Bipartisan Campaign Reform Act of 2002 (BCRA). The FEC's motion is the latest development in the ongoing legal battle over campaign finance reform, aspects of which could have profound implications for nonprofits.

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Senate Finance Committee Considers Nonprofit Accountability

The Senate Finance Committee has sent a letter to Independent Sector (IS), a coalition of 600 member organizations and foundations, asking IS to convene a national panel of nonprofit representatives to recommend legislative options to increase nonprofit accountability. The Sept. 22 letter follows Finance Committee hearings on nonprofit practices held in July that examined allegations of excessive compensation, tax shelters, and Internal Revenue Service (IRS) noncompliance.

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Conferees Consider Rights, Restrictions on Electioneering

Opponents of church electioneering are breathing a tentative sigh of relief. On Sept. 29, Rep. Bill Thomas told the first meeting of conferees that he would not consider amendments to a discussion draft of his proposed version of the corporate tax bill. The chair of the conference committee on is opposing any amendments to that bill that were not provisions or modifications to the previous already-passed Senate or House versions. However, there is still concern that the conferees could include language similar to H.R.

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Nonprofits Need to Increase Their Roles This Election Season

Low turnout among young voters is often ascribed to apathy, but part of the problem is the barriers young people face when casting ballots or trying to work at the polls. A Caltech/MIT study concluded that 4 million to 6 million votes were lost nationwide in the 2000 election. Half of these were traced to registration problems. Nonprofits can help remove these barriers.

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Bill to Regulate Independent Political Committees Introduced in Congress

The "527 Reform Act of 2004", introduced on September 22, would limit soft money for independent political groups, but does not clearly exempt advocacy groups exempt under Section 501(c) of the tax code.

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Bush Expands Faith-Based Initiative to Vouchers, State Control

In an effort to further weaken the wall separating church and state, President Bush is seeking to expand his faith-based initiative to the state and local levels. He is pushing state and local governments to adopt rules and policies similar to federal regulations that favor faith-based groups in government-funded programs.

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Courts Rule on Nonprofits Electioneering Communications

Federal Election Commission (FEC) regulations have come under scrutiny lately as the U.S. District Court for the District of Columbia and the Supreme Court have ruled on lawsuits regarding electioneering communications. These actions have implications for nonprofits. On Sept. 18, District Court Judge Colleen Kollar-Kotelly struck down more than a dozen of the FEC's current rules on political fundraising, including rules regulating electioneering communications of 501(c)(3) groups.

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Tax Bill May Include Church Electioneering and Charity Tax Provisions

While House and Senate negotiators are beginning to advance must-pass export tax repeal legislation (H.R. 4520, S. 1637 ), some lawmakers are beating down doors to slip legislation harmful to nonprofits into the bill by the backdoor -- a bill that would allow church electioneering.

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Independent Political Committees Controversy Hits Courts

The Bush campaign lost the first round of a legal bid to force the Federal Election Commission (FEC) to act on a complaint it filed against political committees opposing his re-election, but attorneys for the campaign promised to pursue the issue. Meanwhile, the House sponsors of campaign finance reform legislation filed suit against the FEC seeking stricter rules regulating political committees.

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