http://www.irs.gov/newsroom/article/0,,id=154780,00.htmlNearly three-quarters of 82 examinations completed to date have concluded that the tax-exempt organizations, including churches, engaged in some level of prohibited political activity. Most of these exams concerned one-time, isolated occurrences of prohibited campaign activity, which the IRS addressed through written advisories to the organizations. In three cases – involving tax-exempt organizations that were not churches – the prohibited activity was egregious enough to warrant the IRS proposing the revocation of the organizations’ tax-exempt status. The recent examinations resulted from specific referrals and covered only a small segment of the tax-exempt community, which includes more than 1 million tax-exempt 501 (c)(3) organizations in the U.S.
Some of the specific instances of political intervention alleged and examined include the following:
• Charities, including churches, distributing diverse printed materials that encouraged their members to vote for a particular candidate (24 alleged; 9 determined),
• Religious leaders using the pulpit to endorse or oppose a particular candidate (19 alleged; 12 determined),
• Charities, including churches, endorsing or opposing a candidate on their website or through links to another website (15 alleged; 7 determined),
• Charities, including churches, disseminating voter guides or candidate ratings that encourage readers to vote for particular candidates (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 improper 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 candidate’s political campaign (7 alleged; 5 determined).