IRS Report On Improper Non-Profit Political Activity

The Internal Revenue Service on Friday released a report on its Political Activity Compliance Initiative. The AP says IRS exams of 110 organizations referred to the IRS for potential violations found nearly three out of four churches, charities and other civic groups actually violated tax rules in the 2004 election. Most involved only a single, isolated episode; but in 3 cases, the IRS found violations egregious enough to recommend revoking tax-exempt status. "It's disturbing not because it's pervasive, but because it has the potential to really grow and have a very bad impact on the integrity of charities and churches," IRS Commissioner Mark Everson said in an interview.

Today's New York Times also covers the report and Commr. Everson's speech about it yesterday in Cleveland. The full text of the report and materials released along with it are online. Here is a summary of the alleged and determined violations from the Executive Summary:

• Charities, including churches, distributing diverse printed materials that encouraged their members to vote for a preferred candidate (24 alleged; 9 determined)
• Religious leaders using the pulpit to endorse or oppose a particular candidate (19 alleged; 12 determined)
• Charities, including churches, criticizing or supporting a candidate on their website or through links to another website (15 alleged; 7 determined)
• Charities, including churches, disseminating improper voter guides or candidate ratings (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 improperly 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 candidateÂ’s political campaign (7 alleged; 5 determined).

[Thanks to Blog From the Capital for the lead.]