Nonprofit Speech Rights | Center for Effective Government

Designated Zones Continue to be Drawn for Protesters

The Secret Service has created restricted areas to keep those actively opposing President Bush's policies from being seen during his public appearances. People have been arrested for stepping outside the designated free speech area, and one man was prosecuted in federal court. In South Carolina a long-time political activist was fined $500 for entering a restricted area during a presidential visit. Much like two people who were arrested for stepping onto the street in Atlanta, Brett Bursey, 55, was peacefully protesting.

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Faith-based Initiative Gets a Push with Set Aside Funds

Evidence emerges that faith-based charities are not discriminated against, but instead they are being favored. Last Tuesday during his State of the Union address, President Bush urged Congress to open up billions of dollars in grant money to competition that includes faith-based charities. In doing so he states, "Tonight I ask you codify this into law, so people of faith can know that the law will never discriminate against them again."

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After the McConnell Decision: Impact on Charities and Genuine Issue Advocacy

The recent Supreme Court decision in McConnell v. FEC upholding the Bipartisan Campaign Reform Act of 2002 (BCRA) has the potential to dramatically expand the scope of regulation of federal election activity. The decision did not address the act's applicability to 501(c)(3) charity organizations. However BCRA sponsors Reps. Shays and Meehan have filed suit against the Federal Election Commission (FEC) challenging regulations that exempt 501(c)(3) groups and unpaid broadcasts from restrictions issue ads.

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Shays-Meehan Lawsuit Challenging FEC Rules for Unpaid Broadcasts and Charities Proceeds

For more information see our analysis of the Supreme Court decision's impact on nonprofit advocacy, and issues created by Shays v. FEC.

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IRS Releases Guidance on Genuine Issue Advocacy vs. Electioneering

In late December the IRS released an announcement reminding tax exempt organizations that they must comply with both campaign finance and tax rules during an election year. The guidance, in Revenue Ruling 2004-6, focuses on those nonprofits permitted to take sides in an election and lists the facts and circumstances the IRS believes distinguish genuine issue advocacy from partisan electioneering. Six specific examples are provided. The IRS asks for comments and suggestions on questions for future guidance in this area.

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Complicated and Expensive Reporting for Labor Unions is Put on Hold

A United States Judge issued an injunction this month blocking enforcement of a Department of Labor’s (DOL) final rule on financial reporting by labor unions. The court found unions would suffer “irreparable harm if forced to start complying with new reporting requirements by Jan. 1.”

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Court Upholds Postal Service Ban

A recent ruling by a United States District Court Judge will contribute to the scarcity of places to collect signatures for ballot measures and candidates. The ruling upheld the U.S. Postal Service’s (USPS) 1998 policy change prohibiting solicitation of signatures on petitions, polls, or surveys on any USPS property.

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Supreme Court Upholds Campaign Finance Law

On Dec. 10 the Supreme Court ruled on the constitutionality of the Bipartisan Campaign Reform Act of 2002 (BCRA), upholding most of its provisions, including the ban on soft money contributions to political parties and “electioneering communications” restrictions. It is not clear what impact the ruling will have on charitable organizations. Federal Election Commission (FEC) rules implementing BCRA exempt charities from the ban on electioneering communications. However, Rep.

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Rep. Serrano Urges Congress to Drop Restriction on Legal Services

On Dec. 8, Rep. Jose Serrano (D-NY) raised the issue of restrictions on use of privately raised funds by legal service programs.

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Text of Floor Statement and Letters on Legal Services Restrictions

(1) December 8, 2003 Statement of Rep. Jose Serrano (D-NY) regarding restrictions on use of private money in legal services programs. (2) Letter from nonprofits seeking end to legal services restrictions. (3) Letter from 16 members of Congress seeking end of restrictions. 1. Floor statement of Rep. Serrano (Portion relevant to legal services in bold.) 149 Cong.Rec. H12766-02 2003 WL 22889076 (Cong.Rec.) Congressional Record --- House of Representatives Proceedings and Debates of the 108th Congress, First Session Monday, December 8, 2003

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