DATELINE: June 5, 2007, Chicago
We are as political as the next guy. Although our views may differ from that guy, we both share one thing in common: We are not entitled to claim an income tax deduction for contributions we make to support a candidate for public office. Although the original rationale for the prohibition in Section 501(c)(3) against political campaign interventions by charities is not entirely clear, today many experts justify it as a measure to prevent those who cannot directly deduct their monetary support for candidates from doing so indirectly through gifts to charities.
As the IRS noted last week in its 2006 PACI report, it continues to actively police the landscape for prohibited campaign interventions by charities, including religious organizations. That is why we hope the IRS will vigorously investigate...
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Bill Keller Ministries, revoking its tax-exempt status if the facts merit such action.
In a May 11, 2007 Daily Devotional posed on Live Prayer.com Web site, the author of the devotional, presumably Keller, preaches:
If you vote for Mitt Romney, you are voting for satan!…This message is about the top Christian leaders in our nation who are supporting this cult members quest to become the next President of the United States.
I have watched in horror over the past weeks as one evangelical Christian leader after another has either endorsed, supported, or just as bad, refused to denounce Romney's run for the White House and those Christian leaders who support him...
Let me first discredit immediately the reason many are publicly giving for supporting Romney, and that is his stand on family issues and life. Romney has distinguished himself as the leading Republican candidate to be pro life...Supporting and voting for Romney because of his position on life is NOT a reason to elect a man who will ultimately be used to lead millions of souls to hell.
In response to this Daily Devotional, Barry Lind, the executive director of the Americans United for the Separation of Church and State, filed a formal complaint with Lois Lerner, Director of the IRS's Exempt Organizations Division. He asks the IRS to investigate the apparent intervention. We second that request.
In recent years, the IRS has instigated administrative action against the NAACP and All Saints Church for what are best characterized as alleged coded enodrsements made during official organizaiton functions. Neither of those speeches contained a direct endorsement of a candidate. The question in each instance was whether otherwise permitted issue advocacy had crossed the line, turning into a coded endorsement. In the case of the NAACP, the IRS decided after its investigation not to take action. The All Saints speech is still in dispute, as far as we know.
The IRS has shown a reluctance to revoke exemptions when organizations have crossed the line. This is quite evident from its 2006 PACI report. We hope the IRS vigorously investigates the alleged transgressions by Bill Keller Ministries. Keller told South Florida's Sun-Sentinel, "Let them come after me for making a spiritual statement about Mitt Romney…. I love that…Bring it on." Alan Cooperman, Complaint Filed with IRS After Tampa Televangelist Compares Romney to Satan, Sun-Sentinel, June 1, 2007--Cooperman appears to be a Washington Post reporter.
Mr. Keller apparently does not understand the law. He is free to make spiritual statements, but he is not free to do so on a taxpayer subsized basis if the spiritual statements involve prohibited intervention in a political campaign.
If the facts warrant, the IRS should make an example out of Bill Keller Ministries so that others get some religion before transgressing against the tax code's commandments.
Internal Revenue Service - Circular 230 Disclosure: As provided for in Treasury regulations, any advice (but none is intended) relating to federal taxes that is contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.
THE FOREGOING IS NOT AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. IF LEGAL ADVICE IS REQUIRED, THE NONPROFIT OR OTHER PARTY IN QUESTION SHOULD SEEK THE ADVICE OF QUALIFIED LEGAL COUNSEL. If you liked this post, please visit http://www.charitygovernance.com for a description of our training and consulting services. You will also want to acquire a copy of Jack Siegel's book, A Desktop Guide for Nonprofit Directors, Officers, and Advisors: Avoiding Trouble While Doing Good."
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