Monday, July 31, 2006

How Churches Can Stumble Into Political Contributions That Violate the Tax Code

On July 19, Americans United for Separation of Church and State wrote to IRS officials asking them to investigate the Calvary Temple Church in Kerrville, Texas. (AU Release). Texas Ethics Commission reports disclosed that the congregation donated $1,000 to the Kerr County Republican Party on May 12, 2005, and $250 in 2003 and 2004. Last Friday, BNA's Daily Report For Executives [subscription required] interviewed the church's pastor, Del Way, who said that he had not intended to support a Republican Party candidate when he paid for an advertisement for "Golf Classics", a golf tournament sponsored by the local Republican Party. He said that the church also sponsors other community events, and several parishioners asked him to sponsor the golf tournament. Church officials saw it as a way of giving the church visibility. The problem was not caught by the church's outside auditor because the check was made out to the tournament, not to the Republican party. Americans United Executive Director Barry Lynn told BNA: "If you know it's a Republican entity and the purpose of the tournament is to raise money to elect Republicans, how can you not know what the money is going for?" Pastor Wey has asked the Kerr County Republican Party to return the funds.