IRS Lies to Churches about Political Activities

by Gary DeMar

 Pastors meeting in Washington were warned by officials from the Internal Revenue Service that there are some political activities that could jeopardize their churches’ tax-exempt status. IRS regional manager Peter Lorenzetti told the Faith Leaders Summit that that pastors in their official capacity are not permitted to endorse or oppose candidates, campaign for them, or make contributions to their campaigns. Pastors can, as private citizens, do these things.
Hogwash!
The First Amendment does not prohibit churches from speaking out on any issue including political ones, even if they are tax exempt. The amendment is so clear that liberals almost never cite it:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Rob Boston, Assistant Director of Communications for Americans United for Separation of Church and State and Assistant Editor of Church & State magazine, engages in similar constitutional fiction: “A church cannot link or direct people to an organization telling people how to vote. . . . All nonprofits, including churches, cannot endorse or oppose candidates. The IRS does warn nonprofits about linking to campaign-related websites.”
To prohibit a church from linking to any site for any reason is a violation of the First Amendment. Notice that the First Amendment gives everybody, churches included, the right to speak about religion, write about religion, congregate about religion, and “petition the government for a redress of grievances.”
Intimidating churches has been going on for a long time. Barry Lynn, Executive Director of AU, has been monitoring the content of Sunday sermons since 2004. If these self-appointed snitches don’t like what they hear, that is, if what a pastor says is “too political” and contrary to a liberal political agenda, they will send video and audio tapes to the IRS for investigation. If enough churches challenged the supposed prohibitions, the IRS wouldn’t know what to do. At the moment, the fear factor is enough to keep churches in check.

There are no constitutional prohibitions against churches speaking out on political issues or endorsing candidates. We got into this mess when in 1954 a law was rammed through Congress by then-Senator Lyndon Johnson to restrict churches from speaking freely on topics they have addressed for nearly two millennia. The following is from the IRS:

The ban on political campaign activity by charities and churches was created by Congress more than a half century ago. The Internal Revenue Service administers the tax laws written by Congress and has enforcement authority over tax-exempt organizations. Here is some background information on the political campaign activity ban and the latest IRS enforcement statistics regarding its administration of this congressional ban.
In 1954, Congress approved an amendment by Sen. Lyndon Johnson to prohibit 501(c)(3) organizations, which includes charities and churches, from engaging in any political campaign activity. To the extent Congress has revisited the ban over the years, it has in fact strengthened the ban. The most recent change came in 1987 when Congress amended the language to clarify that the prohibition also applies to statements opposing candidates.

This so-called ban is a direct violation of the First Amendment. The First Amendment states, “Congress shall make no law. . . .” In 1954, Congress made a law prohibiting churches from speaking out on political issues and endorsing candidates. The logic is simple. Since Congress passed such a law, then Congress violated the Constitution. This makes the law null and void.
If you are a pastor who believes in the freedoms outlined in the First Amendment and want to challenge these leftist organizations and the IRS, then I have a deal for you. The Alliance Defense Fund, a Christian legal advocacy group, will defend you.

In response to more than 50 years of threats and intimidation by activist groups wielding the Johnson Amendment as a sword against the Church, ADF began the Pulpit Initiative in 2008. The goal of the Pulpit Initiative is simple: have the Johnson Amendment declared unconstitutional — and once and for all remove the ability of the IRS to censor what a pastor says from the pulpit.

ADF is actively seeking to represent churches or pastors who are under investigation by the IRS for violating the Johnson Amendment by preaching biblical Truth in a way that expresses support for — or opposition to — political candidates. ADF represents all of its clients free of charge.

Don’t be bullied. It’s time to take a stand for Jesus Christ. Your future and the future of your children are at stake. If you want more information, go to the Alliance Defense Fund site at http://speakupmovement.org/church/LearnMore/details/4702

Exemption Requirements - Section 501(c)(3) Organizations

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates. Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170. The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction. Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. For a detailed discussion, see Political and Lobbying Activities. For more information about lobbying activities by charities, see the article Lobbying Issues; for more information about political activities of charities, see the FY-2002 CPE topic Election Year Issues. Additional Information Application Process Step by Step:  Questions and answers that will help an organization determine if it is eligible to apply for recognition of exemption from federal income taxation under IRC section 501(a) and, if so, how to proceed.

USC › Title 26 › Subtitle A › Chapter 1 › Subchapter F › Part I › § 501 (c)(3)

 

(c) List of exempt organizations

(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office. 

 

(h) Expenditures by public charities to influence legislation

(1) General rule

In the case of an organization to which this subsection applies, exemption from taxation under subsection (a) shall be denied because a substantial part of the activities of such organization consists of carrying on propaganda, or otherwise attempting, to influence legislation, but only if such organization normally—

(A) makes lobbying expenditures in excess of the lobbying ceiling amount for such organization for each taxable year, or

(B) makes grass roots expenditures in excess of the grass roots ceiling amount for such organization for each taxable year.

(2) Definitions

For purposes of this subsection—

(A) Lobbying expenditures

The term “lobbying expenditures” means expenditures for the purpose of influencing legislation (as defined in section 4911 (d)).

(B) Lobbying ceiling amount

The lobbying ceiling amount for any organization for any taxable year is 150 percent of the lobbying nontaxable amount for such organization for such taxable year, determined under section 4911.

(C) Grass roots expenditures

The term “grass roots expenditures” means expenditures for the purpose of influencing legislation (as defined in section 4911 (d) without regard to paragraph (1)(B) thereof).

(D) Grass roots ceiling amount

The grass roots ceiling amount for any organization for any taxable year is 150 percent of the grass roots nontaxable amount for such organization for such taxable year, determined under section 4911.

(3) Organizations to which this subsection applies

This subsection shall apply to any organization which has elected (in such manner and at such time as the Secretary may prescribe) to have the provisions of this subsection apply to such organization and which, for the taxable year which includes the date the election is made, is described in subsection (c)(3) and—

(A) is described in paragraph (4), and

(B) is not a disqualified organization under paragraph (5).

(4) Organizations permitted to elect to have this subsection apply

An organization is described in this paragraph if it is described in—

(A) section 170 (b)(1)(A)(ii) (relating to educational institutions),

(B) section 170 (b)(1)(A)(iii) (relating to hospitals and medical research organizations),

(C) section 170 (b)(1)(A)(iv) (relating to organizations supporting government schools),

(D) section 170 (b)(1)(A)(vi) (relating to organizations publicly supported by charitable contributions),

(E) section 509 (a)(2) (relating to organizations publicly supported by admissions, sales, etc.), or

(F) section 509 (a)(3) (relating to organizations supporting certain types of public charities) except that for purposes of this subparagraph, section 509 (a)(3) shall be applied without regard to the last sentence of section 509 (a).

(5) Disqualified organizations

For purposes of paragraph (3) an organization is a disqualified organization if it is—

(A) described in section 170 (b)(1)(A)(i) (relating to churches),

(B) an integrated auxiliary of a church or of a convention or association of churches, or

(C) a member of an affiliated group of organizations (within the meaning of section 4911 (f)(2)) if one or more members of such group is described in subparagraph (A) or (B).

(6) Years for which election is effective

An election by an organization under this subsection shall be effective for all taxable years of such organization which—

(A) end after the date the election is made, and

(B) begin before the date the election is revoked by such organization (under regulations prescribed by the Secretary).

(7) No effect on certain organizations

With respect to any organization for a taxable year for which—

(A) such organization is a disqualified organization (within the meaning of paragraph (5)), or

(B) an election under this subsection is not in effect for such organization,

nothing in this subsection or in section 4911 shall be construed to affect the interpretation of the phrase, “no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation,” under subsection (c)(3).

(8) Affiliated organizations

For rules regarding affiliated organizations, see section 4911 (f).