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Nonprofits Shouldn’t Be Silenced in 2008 Campaign

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Posted: August 13, 2007 12:21 AM
Author: Perla Ni

imageI couldn’t agree more with Robert Egger’s call in The Chronicle of Philanthropy for nonprofits to challenge the prohibition of their involvement in politics: “the nonprofit world cannot allow the country’s future to be determined by a political process in which it has no role.”

In this election, in which the candidates are already heatedly debating complex issues such as universal health care, global warming, gay marriage, poverty, and farm subsidies, nonprofits need to weigh in.  There’s a lot of confusion among the public as to which candidate’s policies are better.  Nonprofits, who are battling these issues on the front lines every day, who are witness to which policies have failed and which policies have worked in the past, can help voters make critical decisions. 

I’ve seen some of the democratic debates but I am still undecided, and I would love to hear from nonprofits that I trust on these issues.  I’d love to hear what my local organic food co-op thinks about farm subsidies, or what the local homeless shelter thinks about John Edwards’ universal health policy.  I’d love to hear from my local Peninsula Peace and Justice Center, which has been working on peace issues since the 1960s, about which candidate has the better foreign policy on the Middle East. 

The current rule makes no sense. It was established in 1954 when Senator Lyndon B. Johnson sought a legislative route to silence some of his anticommunist critics. The U.S. Senate then passed a major tax code revision which, in effect, made the IRS the speech police.

“When the Internal Revenue Service was established, it had one purpose—to collect revenue for the general treasury,” writes Jay Sekulow, chief counsel of the American Center for Law and Justice, in a Milwaukee Journal Sentinel article. “Over the past 50 years, that role has expanded and, to the chagrin of many people of faith, the IRS has become the “speech police"—holding a heavy hand over non-profit organizations, including churches, and threatening to remove their tax-exempt status if they participate in political activity....The law is flawed, misplaced and a disaster.”

Nonprofits should have every right to talk about the moral and political issues of the day, especially during political campaigns when they can affect the vote. (Of course, they would still need to abide by the current campaign finance laws that restrict donations to national political parties.) I just don’t see why nonprofits shouldn’t have the constitutional right to support or criticize politicians based on where the politicians stand on the issues. What do you think? 

Image source: stock.xchng


image Perla Ni, founder and former publisher of Stanford Social Innovation Review, is the founder and CEO of GreatNonprofits. She is also a co-founder of Grassroots.com.

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The ONE Campaign, through an initiative called ONE Vote ‘08, is doing a good job with candidate- as well as grassroots-engagement in primary battlegrounds around the country, trying to inject the issue of global poverty into the upcoming presidentials.  See: http://www.onevote08.org/

»» Posted by: Joe Cerrell on August 23, 2007 12:07 PM

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Any organization has “the constitutional right to support or criticize candidates.” They just don’t have the right to do it and remain a 501(c)3 non-profit.  So become a for-profit enterprise or a 527 or a 501(c)4… your donors won’t get to deduct their contributions from their taxes, but if explicitly saying that you like candidate x is so important to you, then this is a small price to pay.  Most issue-oriented 501(c)3s get around this by being unambiguous about the issues and letting the public connect the dots to the candidates.

»» Posted by: Mark Hammitt on August 23, 2007 01:06 PM

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THE AUG. 23 E-MAIL, AND THE BLOGGER SOUND LIKE LIBERAL -LEFTISTS.
LET’S FIX THE POVERTY AT HOME.
LET’S DEMAND REDUCTION OF THE CO2 IN AFRICA, INDIA, CHINA AND THE PHILIPPINES.
STOP ENDLESSLY CONDEMNING THE VERY CORPORATIONS THAT FINANCE MUCH CHARITABLE WORK.
CHECK TO SEE HOW PHILANTHROPY IS SPENT.  THE SALVATION ARMY IS THE IDEAL EXAMPLE.
THE “BLEEDING HEART” PEOPLE OFTEN LIVE “CUSHY” LIVES IN FASHIONABLE OFFICES, EXPENSIVE
RESTAURANTS, AND COSTLY VISITS AROUND THE GLOBE. 
WOULD THESE “CRUSADERS” PAY THEIR OWN WAY TO SEE HOW THINGS ARE IN NAIROBI

AS YOU CAN IMAGINE, MANY OF US FEEL THAT “SOCIAL FIXING” IS VERY POORLY DONE.

DAHLMANN

»» Posted by: DAHLMANN on August 23, 2007 01:25 PM

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501(c)(3) nonprofits can legally engage in education of officeholders without lobbying on particular issues, and many do just that on Capitol Hill.  As for candidate involvement, Mr. Hammitt is correct:  most 501(c)(3)s educate on the issues and let the public connect the dots to candidates.  Another route is for 501(c)(3)s to establish separate political action committees to explicitly raise funds from supporters that can be contributed to campaigns, thereby separating political activities from their other operations.

»» Posted by: Janet Kavinoky on August 23, 2007 03:01 PM

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Mark - The risk of losing one’s 501c3 status is exactly what is at stake.  For most nonprofits, it is not an option to set up a 501c4 or 527 for just the reasons that you give - they fear losing donors because they no longer can offer ar tax deduction on donations.  I recently overheard a large nonprofit discussing a potential partnership with a youth oriented nonprofit that had a section on their website about homelessness.  The website had links to articles as well as a tool to locate and send an email to the local congressman.  The large nonprofit was worried that the partnershpi with this potential partner, by virtue of having a website with articles and a tool to write the letter, may jeapardize its 501c3 status.  Now as Janet points out very correctly - this is well within the law of engaging in education - and many think that it’s a matter of just educating nonprofits more.  But I disagree to some extent because even many nonprofit lawyers are argueing for more bright line clarifications from the IRS.  See http://philanthropy.com/news/updates/2806/tax-lawyers-ask-irs-to-clarify-rules-for-nonprofit-groups-on-election-activities.

The motivation and intent of the 1954 1954 IRS rule seems unjustified.  And the application of it seems to have been selective, and the threat of losing one’s 501ce status has cast a pall upon the entire sector making many nonprofits fearful of just about anything that involves politicians.

»» Posted by: Perla Ni on August 28, 2007 07:07 AM

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