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13th April 03:21
External User
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501(c)(3): The involvement of the Church in political processes (long) (history offerings speech order case)
I've been giving thought over the years regarding the Church's
involvement in various political processes, especially considering the
recent activist efforts to change or maintain laws about marriage and
family in the U.S. or elsewhere. [1]
As a bit of background, I note that at least every other year in the
U.S., as the elections for the Congress and the President approach,
the Church republishes a letter which declares the neutrality of the
Church with regard to political party, endor*****t of candidates, and
the use of Church resources in a candidate's campaign. In short, any
express endor*****t by the Church is denied by the Church, and members
and candidates are instructed in no uncertain terms to never imply
that the Church endorses one candidate or the other in any given
political race.
Many Church members have taken the statement to mean that the Church
does not or should not involve itself in any political process, a
notion that was, for these members, remarkably upset by the Church's
insistent funding and support of marriage initiatives and other
efforts to define marriage in law as a hetero***ual union.
Gordon B. Hinckley, in one of his addresses to the Church during these
recent efforts pointed out that the Church also involved itself and
took a stand on ERA in the '70's, and the Prohibition amendments to
the Constitution in the early 20th Century. He also made clear that on
moral and lifestyle political issues where there is clear doctrine,
the Church would always take a stand and endorse a position to its
members.
The idea that the Church does not involve itself in candidate races,
but does involve itself in selected issue races, appears to some to be
a contradiction in motive. To those who believe that way, the Church
is being hypocritical or disingenuous.
I believe that is not at all the case. And based on some new
information it looks now to me that the distinction is based much more
on U.S. tax law than it is in any moral or doctrinal stance on the
issue of Church involvement in the political process.
Specifically, I spent some time last week involved in a seminar called
"PTA and the Law", which I attended as my daughter's school's PTA
Treasurer, in order to get a better handle on what a PTA may do and
what it may not do. It turns out to be a relatively complicated thing.
The seminar leader there explained that there are two kinds of
charitable organizations which a PTA may be, namely, it may be a
non-profit charitable organization which involves itself substantially
in political processes of all kinds, or it may be one which does not.
The names for those organizations are taken from the tax code,
respectively, 501(c)(4), and 501(c)(3).
Now, a 501(c)(4) non-profit may endorse candidates and participate in
lobbying activities and other political efforts, but donations to it
may not be deducted from one's income taxes, regardless of the amount.
The Christian Coalition is an example of such an organization.
In contrast, donations to a 501(c)(3) non-profit are as tax-deductable
as the law allows. 501(c)(3) are required to furnish donors with
statements if their donations exceed $250. But they are also required
to state that they never endorse political candidates or their
campaigns, and to instruct their boards and members not to behave in
their capacities as non-profit administrators as though they did.
In the U.S., the Church receives donations which are tax-deductable.
It provides donors with statements if their donations exceed $250 in a
year. And, the Church publishes a letter of neutrality regarding
political campaigns before and during each election cycle. Therefore,
the Church is organized for tax purposes as an IRS 501(c)(3)
non-profit organization. Many churches are so organized. The benefits
in property and income tax exemptions in the entire nation are very
good.
Now, what of the political initiatives in which the Church does
involve itself? Well, according to this PTA administrator, a 501(c)(3)
may do so, as long as the involvement is not "substantial". I think
this is the kind of thing that got the Christian Coalition into the
trouble it was in with the IRS a number of years ago; its enemies
helped the IRS determine that its 501(c)(3) status was inappropriate
to its activities, and re characterized it under 501(c)(4).
What I've drawn from all of this is that the Church has taken its
position on political campaigns not out of a doctrinal or moral basis,
but simply because the law requires it to behave in a certain way in
order to maintain tax exempt status for its property and the income
derived from the tithes and offerings of its members.
If my reasoning is correct, then the remaining question is whether the
Church has engaged in political and lobbying activities in a
"insubstantial" degree. The description of "lobbying activities" bears
examining:
"What is 'insubstantial'? Although there is no recognized formula...,
it is generally recognized that an organization that spends up to 5%
of its resources on lobbying is not engaged to a substantial degree in
this activity. Some experts, however, state that 20 percent is
acceptable." [2]
The definitions of what is and is not "lobbying activity" is also
germane:
"Examples of Lobbying Activities:
" -- Advocating... specific legislation
" -- Communicating with a legislator... in regards to specific
legislation
" -- Using the public to contact a legislator with respect to specific
legislation
"Examples of Activities that do not Constitute Lobbying:
" -- Publication of position papers on issues that do not address
pending or proposed legislation
" -- Communication to your members regarding pending legislation as
long as you are not asking your members to engage in grass roots
lobbying
" -- Conducting, commissioning, and/or publishing nonpartisan
****ysis, study or research that has a demonstrated factual foundation
and is presented in an independent and objective way
" -- Responding to a legislator's request for advice or assistance,
even with respect to pending legislation
" -- Communications that relate to pending legislation that might
affect the existence, duties, or powers of your organization
" -- Routine communications with legislators or governmental
officials" [3]
The law also permits election under IRC 501(h), for a non-profit to
declare the amount of "insubstantial" money and time it will devote to
"lobbying" and "grass-roots lobbying", but it doesn't require it.
Given the possible percentages, which I'll discuss a bit more below, I
think it's probably not in the Church's best interests to make a
501(h) declaration, since that would seem to limit the effort to $1
million in money and volunteer time. [4]
So what does all of this mean in terms of the allegations laid by the
Church's critics with regard to its political involvement?
In my opinion, it means that there is no real doctrinal prohibition
against the Church's participation in any political process, and I
think in its history that it didn't restrain itself from partisan
endor*****ts unless it was in its best interest, as it is today under
the Internal Revenue Code, to do so. In any case I don't consider it
immoral or remotely bad for a group of like-minded people to offer
endor*****ts on political issues. Doing so is the very definition of
participation in the democratic process.
It also means that :
-- When a Utah politician contacts members of Church leadership to get
their opinions on legislation, that is lawful, and might even be
desirable to that politician's constituency. But that is an issue
between the politician and his voters, a valid issue to raise in his
campaigns, and not the politician and the Church.
-- When a politician implies or announces his Mormonism as a reason
why he should be elected, that is also lawful, if a bit distasteful to
his constituency and non constituent observers. (It commonly comes
across to me as a non-sequitur anyway; incompetent Mormons abound,
after all.) The Church has no responsibility and maybe even too much
culpability if it speaks out against a candidate on those grounds. On
the other hand, if that politician implies specific endor*****t from
the _Church_ (as opposed to his social involvement as a Mormon or his
allegiance to Mormonism as a movement), that's troublesome and the
Church should denounce it to protect its tax-exempt status. And it
does, each election cycle.
-- When the Church distributes general statements that its members
should support or oppose certain classes of legislation (which the
Church does all the time, IME), such as gambling legislation, or
Prohibition, or *** marriage, or whatever, that is also lawful,
because it is not a lobbying activity.
-- When the Church calls for its members locally to canvass
neighborhoods in favor of or against a pending piece of legislation or
an initiative, then *maybe* it is engaging in "grass roots lobbying".
There is a difference, after all, between asking your people to tell
their neighbors and asking them to write their congressman. The
Church, during the California Proposition 22 campaigns, did the
former. Even so, it is lawful if the organization effort, combined
with all its other political lobbying efforts, constitutes an
"insubstantial" portion of all its activities.
-- When the Church calls on its members to vote "yes" or "no" on an
initiative or referendum, that also appears lawful, since
communicating to one's members regarding pending legislation does not
constitute lobbying, grassroots or otherwise. However, if the Church
asks the membership to get involved under the Church's banner, it
would have to make sure that its involvement was "insubstantial".
And so forth.
Proceeding forward, then, we'd have to consider whether or not the
recent political efforts supported by organized Church statements
qualify as "substantial" in the eyes of the law. This becomes a bit
difficult, since the IRS standards for judging what is substantial is
based on what is spent, not what is taken in, and the amount of money
the Church spends each year is unknown to me. But for the sake of this
argument, let's use an article written by Gerald and Sandra Tanner
about the late-90's TIME Magazine article, "Mormons, Inc." In it the
Tanners quote TIME magazine as reporting a United States income from
tithes at $4.9 billion. [5]
I also note the claim by the *** and ******* Political Action Support
Groups, in a report about Elder Ballard's recent BYU speech, that "The
Mormon Church has spent millions of dollars campaigning against ***
marriage," which is true. [6]
Now, given an income value of $4.9 billion, the conservative
5%-of-all-activites figure would result in a maximum permitted
expenditure of $245 million per year on all of the Church's lobbying
and grassroots lobbying efforts. [7] If one were to use the 20%
figure, then the Church could spend up to $980 million of donated
funds for political efforts before violating Internal Revenue Code
regarding the tax-exempt nature of its donors donations.
In addition, the Church would have to be careful never to endorse a
candidate or give more than $0.01 to a candidate's campaign.
In short, to be not "insubstantial", the Church would have to spend
almost $250 million per year in time and money in order to come close
to twigging a violation of federal law, in my opinion. No figure
offered by its critics comes very close at all to that figure. One
report shows that about $1.1 million was contributed by the Church in
efforts to defeat "*** marriage" initiatives there, and $3.3 million
to support Proposition 22 in California, during the years that was in
question. [8] Similar efforts, such as the Church's declared
opposition to pari-mutual betting in Utah, are likely just as small,
percentagewise.
If we figure $4 million per year lobbying and grassroots lobbying, the
Church would be expending 0.08% of its donated income on political
activities, two to three orders of magnitude below thresholds defined
as problematic for a Church who lobbies politicians or endorses
legislation. And that's the yardstick by which the Federal government
measures these kinds of activities for IRC 501(c)(3) organizations.
As near as I can tell. I'm just a li'l ol' PTA Treasurer, after all,
and not a Lawyer, but I thought it interesting.
Rob
[1] I *don't* want to get into a discussion about "*** marriage",
which is a long and seemingly un-winnable set of arguments both here
and elsewhere; there's far too much emotion behind it.
[2] _Your PTA and the Law -- A Publication of the Washington State
Parent Teacher Association_, pg. 10
[3] Ibid, pp. 10-11
[4] If you ever wondered why the Church computes the value of its
volunteers' time, this is it.
[5] http://www.xmission.com/~country/reason/lhm1097b.htm. Some dispute
that figure, arguing that it is much lower than that. For the purposes
of this essay, I treat it as accurate enough, even though it probably
does not include the value of volunteered time by 60,000-plus
60/hour/week missionaries, nor any of the part-time work by other
missionaries throughout the country or the world.
[6] http://snurl.com/2hew, an article entitled "Mormon Leader Trashes
*** Marriage"
[7] Now one can see why a 501(h) declaration might not be advisable
for an organization as large as the Church.
[8] http://journalism.berkeley.edu/projects/chavez/mauleonb.html,
which acknowledges that the Church operates within the bounds of the
law.
--
[You] don't make your kids P.C.-proof by keeping them
ignorant, you do it by helping them learn how to
educate themselves.
-- Orson Scott Card
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