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| News Briefs |
IRS Cracks Down on NonProfits’ Illegal Campaigning
03/15/2006
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The Internal Revenue Service says nearly three quarters of the 82 tax-exempt organizations that it recently investigated for allegedly engaging in prohibited political activity during the 2004 campaign did in fact break the rules. Most of the incidents were one-time, isolated occurrences, which the IRS said it has addressed by issuing written advisories. However, in three cases the activity was egregious enough to warrant the possible revocation of the organization’s tax-exempt status.
The IRS has posted the results of the study, along with a fact sheet for nonprofits and its guidelines for reviewing complaints against nonprofits in the 2006 election season, on its website.
"The law does not allow charities to participate in political campaigns," IRS Commissioner Mark Everson said in a news release posted on the IRS website. "While the vast majority of charities, including churches, did not engage in politicking, our examinations substantiated a disturbing amount of political intervention in the 2004 electoral cycle. As the 2006 electoral season approaches, we are going to provide more and better guidance and move quickly to address prohibited activities."
The IRS study uncovered the following examples of illegal political intervention:
• Charities, including churches, distributing diverse printed materials that encouraged their members to vote for a particular candidate (24 alleged; 9 determined),
• Religious leaders using the pulpit to endorse or oppose a particular candidate (19 alleged; 12 determined),
• Charities, including churches, endorsing or opposing a candidate on their website or through links to another website (15 alleged; 7 determined),
• Charities, including churches, disseminating voter guides or candidate ratings that encourage readers to vote for particular candidates (14 alleged; 4 determined),
• Charities, including churches, placing signs on their property that show they support a particular candidate (12 alleged; 9 determined),
• Charities, including churches, giving improper preferential treatment to certain candidates by permitting them to speak at functions (11 alleged; 9 determined), and
• Charities, including churches, making cash contributions to a candidate’s political campaign (7 alleged; 5 determined).
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