**[Houses of Worship Political Speech Protection Act]{.underline}**

# HR-2357

**To co-sponsor this legislation, please contact Patricia Meagher at
x6-5447.**

\--Changing IRC Section 501(c)(3) to allow churches and other Houses of
Worship, but no other Section 501(c)(3) organizations, to engage in an
\"insubstantial\" amount of political speech activity, similar to the
current restriction allowing all Section 501(c)(3) organizations to
engage in an \"insubstantial\" amount of lobbying activity:

-   Section 501(c)(3) of the Internal Revenue Code has been interpreted
    by courts to prevent even a single activity which might be regarded
    as \"participating in, or intervening in\" a political campaign on
    behalf of or in Opposition to a candidate for public office. This
    has had a dramatic chilling effect on churches and houses of worship
    since activities or comments which are not specifically intended to
    be \"political\" may result in monetary sanctions from the IRS, or
    loss of tax-exemption altogether. See, Association of the Bar of the
    City of New York v. Commissioner, 858 F.2d 876 (2nd Cir, 1988);
    Branch Ministries v. Rossotti, 40 F. Supp. 2d 15 (D.D.C. 1999);
    aff\'d, 211 F.3d 1137 (D.C. Cir. 2000).

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-   HR-2357 confirms this country\'s tradition and respect for the First
    Amendment by removing the muzzle from churches and houses of worship
    created by the absolute ban against all speech or activities that
    may be regarded as \"political.\"

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-   The \"political\" ban in Section 501(c)(3) was inserted in 1954 by
    then Senator Lyndon Johnson. This was done with a floor amendment to
    the Revenue Act of 1954, and absolutely no hearings or Congressional
    record was developed on the need or reasons for the absolute ban.

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-   Section 501(c)(3)\'s flat ban on any \"political\" involvement by
    churches and houses of worship is not limited to active campaigning.
    It includes \"voter education\" activities that may be perceived as
    partisan. This means that, for example, a rabbi, priest, or minister
    which takes a position for or against abortion during a campaign
    period, simply because abortion may be an issue being debated during
    the campaign, may have his/her church/temple/mosque sanctioned or
    lose tax-exempt standing. The same is true for any current issue,
    ranging from, for example, U.S. military involvement (for or
    against) in the Balkans; taxes; funding for the United

Nations; Middle East peace efforts; etc.

-   Allowing churches and houses of worship to engage in an
    \"insubstantial\" amount of activity that may be regarded as
    \"political\" simply follows the pattern of allowing such
    organizations to engage in an \"insubstantial\" amount of direct
    lobbying activities.

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-   Allowing churches and houses of worship to engage in
    \"insubstantial\" amounts of \"political\" speech or activity
    enhances confidence in the laws, and removes the ominous and
    threatening hand of the IRS.

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-   Many churches in America, including African American churches, are
    chilled by the language of Section 501(c)(3), or by threats of IRS
    enforcement activities, from either making important moral, ethical,
    or scriptural expressions which may touch on current political
    campaigns, or from permitting others to do so from their premises or
    the pulpit. To remove this uncertainty, allowing an
    \"insubstantiality\" test for \"political\" speech or activities by
    churches and houses of worship is vitally important.

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-   Churches, synagogues, and mosques are chilled in publicly expressing
    moral and scriptural views on the controversial issues of the day
    for fear they will lose their tax-exempt status with the IRS.

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-   HR-2357 will standardize the campaign activity restriction with the
    lobbying activity restriction, which allows an insubstantial amount
    of lobbying activity without jeopardizing the tax-exempt status of
    churches and houses of worship.

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-   HR-2357 finally recognizes the right of churches and houses of
    worship to exercise their First Amendment rights, and remove
    considerable fear, anxiety, and uncertainty.

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-   HR-2357 will permit churches and houses of worship to operate with
    greater efficiency and save considerable money on legal costs by
    clarifying an area of legal confusion.

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-   The \"insubstantiality\" test, as opposed to the \"safe harbor\"
    expenditure limits in Section 501(h) for direct lobbying, is the
    best test to establish since churches are precluded from making a
    \"safe harbor\" election under

Section 501(h)(5).

**To co-sponsor this legislation, please contact Patricia Meagher at
x6-5447.**