When the preacher’s pulpit turns into a political pulpit, plenty of people are listening – and ready to report what they hear to the Internal Revenue Service. In recent years, a number of churches and religious organizations have been referred to the IRS for violating the provisions of their federal tax-exempt status by allegedly trying to influence political campaigns and elections. The IRS is still investigating 20 such cases stemming from 2004 elections. In the latest case to generate publicity, the IRS sent a letter during the summer to a liberal Episcopal church in Pasadena, Calif., saying that the church’s tax-exempt status had been jeopardized by a strong anti-war sermon just two days before the 2004 presidential election. The guest sermon, by a former rector, did not explicitly urge parishioners to vote against President Bush or for Sen. John Kerry.

The 2004 election was particularly contentious for religious organizations, with watchdogs on the right and left listening closely to every utterance. When the Roman Catholic bishop in Colorado Springs sent out a church letter in 2004 saying Catholics should not receive communion if they voted for politicians who supported abortion rights, Americans United for Separation of Church and State called on the IRS to investigate the possibility of revoking the diocese’s tax-exempt status. Americans United made the same demand when ministers at a church in Miami openly campaigned for Kerry.

At the same time, some members of Congress were pushing to give houses of worship more leeway to express political views. A “Safe Harbor for Churches” measure, which would have allowed clergy to endorse political candidates without jeopardizing their institutions’ tax-exempt status, was introduced in the House but killed in 2004. Now under consideration is the “Houses of Worship Free Speech Restoration Act of 2005,” (enter the term “free speech restoration” to bring up a link to the legislation) which amends the Internal Revenue Code to state that churches and other houses of worship will not lose their tax-exempt status because of the “content, preparation or presentation of any homily, sermon, teaching, dialectic or other presentation made during religious services or gatherings.” That bill is now in the House Ways and Means Committee.

While liberal and conservative religious groups are split in their support of government actions to change IRS rules regarding tax exemption, they have found themselves united in a desire to maintain the unique role religion has had in American politics. America has a long history of religious leaders acting as the conscience and moral compass of the nation. It’s how those beliefs are relayed that is at the heart of the tax exemption battle.

Why it matters

The 2006 midterm elections are just around the corner, and they could shift the balance of power in Washington. As a result, even though polls show Americans are divided about whether clergy should be involved in the political process, more religious leaders and religious groups may be tempted to or will let their views on various issues of the day be known. That will likely intensify IRS scrutiny.

Questions for reporters

• How are religious organizations and leaders in your community responding to IRS scrutiny?
• Where do they stand on federal legislation that would allow religious groups and leaders to engage in political activity without risking their tax-exempt status?
• Have there been any complaints about religious groups or leaders endorsing political candidates in your community?
• How do members of congregations feel about such political involvement?
• Where do local political leaders stand on the issue?

Background

IRS RULES

• Read the Internal Revenue Service’s rules on tax exemption for religious groups.
• Read IRS rules for charities on political and lobbying activity.
• The IRS issued an advisory in April 2004 warning charities not to engage in political campaign activities in an election year. The IRS regularly issues such warnings in election years.
• In December 2003, the IRS issued a reminder to tax-exempt organizations that their public advocacy activities must adhere to both tax rules and campaign finance laws.

MORE ON TAX EXEMPTIONS

• Read “Politics and the Pulpit 2004: A Guide to the Internal Revenue Restrictions on the Political Activity of Religious Organizations” from the Pew Forum on Religion & Public Life.
• Read the First Amendment Center’s backgrounder on tax exemptions for religious groups, including FAQ and relevant court cases. The center also offers a Q&A on religion and politics from The Associated Press.
• The American Center for Law and Justice offers a resource page on churches’ tax-exempt status. ACLJ has frequently argued in court for the right of churches to engage in politics.
• Americans United for the Separation of Church and State has this FAQ on electioneering by houses of worship. It also has a statement on the controversy over the Pasadena, Calif., Episcopal church’s tax-exempt status.
• About.com offers a collection of articles on religious tax exemption under its atheism category.

POLLS

• PollingReport.com offers a collection of polls on Americans’ opinions on politics and religion.
• Read poll data on religion and politics from the Pew Forum on Religion & Public Life.
 

ARTICLES

• Read a Nov. 10, 2005, Washington Times article on IRS investigations of 60 tax-exempt groups, including 20 churches.
• Read a Nov. 8, 2005, Los Angeles Times article on how conservative groups are angry about IRS investigations of churches.
• Read a Nov. 7, 2005, Los Angeles Times article on the IRS investigating All Saints Episcopal Church in Pasadena, Calif., after its former rector delivered an anti-war sermon just days before the 2004 election.
• Read a November 2005 Christianity Today weblog on the controversy over the Pasadena church’s tax-exempt status.
• Read a June 22, 2005, transcript of a Court TV segment on religion and public life.
• Read a Jan. 6, 2005, Chronicle of Philanthropy article on the growth of nonprofit religious and education groups.
• Read a June 16, 2004, Washington Post article on the House Ways and Means Committee dropping the “Safe Harbor for Churches” provision from a corporate tax bill. The provision would have allowed the clergy to endorse political candidates without risking their tax-exempt status.
• Read a Sept. 1, 2000, transcript of a PBS Religion and Ethics Newsweekly segment on religion and politics.
• Read a 2000 Boston College Law Review article on the impact the religious tax exemption requirement has on American society.
 

National sources

For more sources, see ReligionLink’s Guide to Church-State Sources.

• The Rev. Barry Lynn is executive director of Americans United for Separation of Church and State, which opposes church political activity. Lynn’s group was particularly active during the 2004 election and came out strongly against the “Safe Harbor for Churches,” and it now opposes the “Houses of Worship Free Speech Restoration Act of 2005.” Contact Joe Conn, 202-466-3234, conn@au.org.
• Richard Land is president of the Southern Baptist Convention’s Ethics and Religious Liberty Commission. He was against the “Safe Harbor for Churches” provision, saying it made distinctions that would have required more scrutiny of churches by the IRS, not less. However, he supports the “Houses of Worship Free Speech Restoration Act of 2005.” Contact Jill Martin, 615-782-8417, jmartin@erlc.com.
• Steven Miller is director of the IRS exempt organizations division in Washington, D.C. Contact media relations, 202-622-4000.
• Nathan Diament is director of the Institute for Public Affairs with the Union of Orthodox Jewish Congregations of America, based in New York. His group was against the “Safe Harbor for Churches” provision. Contact 202-513-6484, ipadc@ou.org.
• U.S. Rep. Walter Jones Jr., R-N.C., is the sponsor of the “Houses of Worship Free Speech Restoration Act of 2005.” Contact Lanier Swann at 202-225-3415.
• The American Center for Law and Justice supports the “Houses of Worship Free Speech Restoration Act of 2005.” Contact Gene Kapp, media director, 757-226-2489.
• The Rev. C. Welton Gaddy, executive director of the Washington, D.C.-based Interfaith Alliance, opposed the “Safe Harbor for Churches” provision. Of the “Houses of Worship Free Speech Restoration Act of 2005,” Gaddy said it encourages “willful ignorance of the law by houses of worship.” Contact through media relations director Don Parker, 202-639-6370 ext. 106, dparker@interfaithalliance.org.
• Bill Aiken is director of public affairs for Soka Gakkai International-USA, an American Buddhist association based in Santa Monica, Calif., that opposes the “Houses of Worship Free Speech Restoration Act of 2005.” Contact 301-346-0167, waiken@sgi-usa.org.
• Ted Haggard is head of the 30-million-member National Association of Evangelicals. It supports the “Houses of Worship Free Speech Restoration Act of 2005.” But, inspired by the situation in Pasadena, Calif., the group also has reached out to the National Council of Churches in an effort to protect all religious groups, liberal or conservative, from what they see as selective targeting by the IRS. Contact 719-268-8214, admin@nae.net.
• Robert W. Edgar is general secretary of the National Council of Churches. The group opposes the “Houses of Worship Free Speech Restoration Act of 2005,” saying it “endangers both the integrity of the electoral process and the historic American concept of a prophetic religious community that explores issues from a moral and spiritual perspective but carefully refrains from playing partisan politics.” Contact director of media relations Carol Fouke, 212-870-2252, cfouke@ncccusa.org.
• Raymond Flynn is chairman of the Catholic Alliance, a former mayor of Boston and former U.S. ambassador to the Vatican. His group supports the “Houses of Worship Free Speech Restoration Act of 2005.” Contact 202-544-9600, deallaw@aol.com.
• Rabbi Daniel Lapin is head of the conservative Jewish group Toward Tradition and supports the “Houses of Worship Free Speech Restoration Act of 2005.” Contact 206-236-3046 or 800-591-7579, mail@towardtradition.org.
• James C. Dobson is founder, former president and chairman of the board for the conservative group Focus on the Family. His group supports the “Houses of Worship Free Speech Restoration Act of 2005.” Contact Christopher Norfleet, 719-548-4570, culturalissues@family.org.
• Brad Dacus is president of the Pacific Justice Institute, which usually lends legal support for conservative religious causes. It has offered to help All Saints Episcopal Church in Pasadena, Calif., in its dispute with the IRS. Contact 916-857-6900, pji@pacificjustice.org.
• Anthony R. Picarello Jr. is president and general counsel of the Becket Fund for Religious Liberty. He believes preachers should be free to say whatever they want without threatening their tax-exempt status. Contact 202-955-0095, apicarello@becketfund.org.

Regional sources

For more sources, see ReligionLink’s Guide to Church-State Sources.

IN THE NORTHEAST

• Bryan Hehir is the Parker Gilbert Montgomery Professor of the Practice of Religion and Public Life at the Hauser Center for Nonprofit Organizations at Harvard University’s John F. Kennedy School of Government. He is an expert on religion and American society. Contact 617-384-7776, bryan_hehir@ksg.harvard.edu.
• Richard Pomp is a law professor at the University of Connecticut and a tax expert. He says the situation at All Saints Episcopal Church in Pasadena, Calif., is reminiscent of the days when President Richard Nixon used the IRS to target his enemies. Contact 860-570-5251.

IN THE EAST

• Brian E. Comerford is a professor at the Brooklyn Law School in Brooklyn, N.Y. He is an expert on religion and federal tax laws. He wrote the entry “Tax Law and American Religion” for Religion and American Law: An Encyclopedia (Garland Publishing, 1999). Contact 718-780-7942, brian.comerford@brooklaw.edu.
• Ram A. Cnaan is a professor at the school of social work at the University of Pennsylvania in Philadelphia. He studies religious nonprofit organizations and their role in American society. Contact 215-898-5523, cnaan@ssw.upenn.edu.
• Rikki Abzug is an assistant professor of nonprofit management at Milano The New School for Management and Urban Policy, in New York. She has looked at the growing number of Islamic nonprofit organizations in the U.S. Contact 212-229-5311 ext. 1414, Abzugr@newschool.edu.
• Marci Hamilton is a professor at the Cardozo School of Law at Yeshiva University in New York. She is a nationally recognized expert on the religion clauses of the First Amendment and wrote the book God vs. the Gavel: Religion and the Rule of Law (Cambridge University Press, 2005). Contact 212-790-0215, Hamilton02@aol.com.
• Ira Lupu is a constitutional law scholar and professor at the George Washington University Law School. He says that if religious groups want to engage in partisan politics, they must separate their political activities from their educational or religious work. Contact 202-994-7053, iclupu@law.gwu.edu.

IN THE SOUTHEAST

• Frances Hill is a University of Miami law professor and an expert on the political rights of tax-exempt organizations. She says tax-exempt organizations can be passionate about politics without losing their tax-exempt status. Contact 305-284-2642, f.hill@miami.edu.
• Neal E. Devins is director of the Institute of Bill of Rights Law at the Marshall-Wythe School of Law at the College of William and Mary in Williamsburg, Va. He has studied the case of Bob Jones University’s battle for tax-exempt status. Contact 757-221-3845, nedevi@wm.edu.
• David A. Brennen is the Ellison C. Palmer Professor of Tax Law at the Mercer University School of Law in Macon, Ga. He co-wrote the book The Tax Law of Charities and Other Exempt Organizations: Cases, Materials, Questions and Activities (West Group Publishing, 2003) Contact 478-301-5908, brennen_da@mercer.edu.
• Melissa Rogers is Visiting Professor of Religion and Public Policy at Wake Forest University Divinity School in Falls Church, Va. She previously served as executive director of the Pew Forum on Religion and Public Life in Washington, D.C. She has looked at IRS investigations of churches for political activities related to the 2004 presidential election. Contact 202-904-4936, mrogers01@cox.net.
• Robert Wineburg is a professor of social work at the University of North Carolina-Greensboro who has looked at IRS investigations of churches for political activities related to the 2004 presidential election. Contact 336-334-5228, Bob_wineburg@uncg.edu.

IN THE SOUTH

• Paul Joseph Weber is a political science professor at the University of Louisville in Kentucky. He wrote the entry “Taxation” for the Encyclopedia of Politics and Religion (Routledge, 1998). Contact 502-852-3305, paulweber@louisville.edu.
• Natalie Davis is a political science professor at Birmingham-Southern College. She is an expert on religion and taxes. Contact 205-226-4837, ndavis@bsc.edu.

IN THE MIDWEST

• Gina Torielli is director of the Graduate Program in Taxation at the Thomas M. Cooley Law School in Lansing, Mich. She is an expert on tax-exempt organizations. Contact 248-370-3625, toriellg@cooley.edu.
• John D. Colombo is a Thomas M. Mengler Faculty Scholar at the University of Illinois College of Law in Champaign, Ill. He has proposed a new theoretical and practical system for determining when nonprofit entities should receive tax exemptions. Contact 217-333-7985, jcolombo@law.uiuc.edu.
• Donald Tobin is an associate professor of law at Ohio State University’s Michael E. Moritz College of Law. He is an expert on religious organizations and the federal tax exemption. He has written on the case of the Roman Catholic bishop in Colorado Springs who sent out a church letter saying Catholics should not receive communion if they voted for politicians who supported abortion rights. Contact 614-688-3539, tobin.46@osu.edu.
• Richard W. Garnett is a Lily Endowment associate professor of law at Notre Dame. He wrote the article “A Quiet Faith? Taxes, Politics and the Privatization of Religion” for the Boston College Law Review (2001). Contact 574-631-6981, Rick.Garnett.4@nd.edu.

IN THE SOUTHWEST

• Douglas Laycock is a law professor at the University of Texas who has expertise in the legality of religious political activity. Contact 512-232-1341, dlaycock@mail.law.utexas.edu.
• Peter Frumkin is a professor of public affairs and director of the RGK Center for Philanthropy and Community Service at the LBJ School at the University of Texas at Austin. He is the author of On Being Nonprofit: A Conceptual and Policy Primer (Harvard University Press, 2005). Contact 512-232-7062, frumkin@mail.utexas.edu.
• Vaughn E. James is a law professor at Texas Tech University. He wrote the article “Reaping Where They Have Not Sowed: Have American Churches Failed to Satisfy the Requirements for the Religious Tax Exemptions?” for the Catholic Law Review (2004). Contact 806-742-3990 ext. 246, vjames@law.ttu.edu.

IN THE WEST/NORTHWEST

• Ted Jelen is a political science professor at the University of Nevada, Las Vegas. He wrote the entry “Tax Exempt Status of Religious Organizations” for the Encyclopedia of American Religion and Politics (Facts on File, 2003). Contact 702-895-3355, jelent@unlv.nevada.edu.
• Stephen Bainbridge is a professor of law at the University of California at Los Angeles. He has written on his blog about the Roman Catholic bishop in Colorado Springs who sent out a church letter saying Catholics should not receive communion if they voted for politicians who supported abortion rights. Contact 310-206-1599, bainbridge@law.ucla.edu.