Campaign Activity by Churches: Legal Analysis of Houses of Worship Free Speech Restoration Act

Publication Date: June 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Culture and religion; Politics

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Abstract:

In recent years, there has been increased attention paid to the participation by churches and religious organizations in political campaigns. Under current law, churches and other IRC Section 501(c)(3) tax-exempt organizations are prohibited from engaging in such activity and risk losing their tax-exempt status if they do. While this outcome is rare, it is possible. For example, in Branch Ministries v. Rossotti, 211 F.3d 137 (D.C. Cir. 2000), the U.S. Court of Appeals for the D.C. Circuit upheld the authority of the Internal Revenue Service to revoke the tax exemption of a church that participated in political campaign activity.

Since the Branch Ministries decision, several measures have been introduced in Congress that would allow churches to participate in political campaign activity without jeopardizing their exemption. They are the Houses of Worship Free Speech Restoration Act, H.R. 235 (109th Congress) and H.R. 235 (108th Congress); a provision briefly included in the American Jobs Creation Act of 2004, H.R. 4520 (108th Congress); the Houses of Worship Political Speech Protection Act, H.R. 2357 and S. 2886 (107th Congress); and the Bright-Line Act of 2001, H.R. 2931 (107th Congress).

This report provides an overview of the current tax and campaign finance law relevant to this legislation, a discussion of how each bill would amend current law, and a chart that compares the bills. The report will be updated as developments occur.