From: David Andrews 
Subject: Nonprofit Advocacy Legislation
This item may be of interest to us...
David Andrews
>ATTACK ON NONPROFIT ADVOCACY NOW PART OF CAMPAIGN FINANCE BILL
>
>At around 2:00 p.m. today, OMB Watch received notification
>that a 4:00 p.m. mark-up of a bill dealing with campaign finance
>would affect nonprofit organizations  and directly impact
>their ability to advocate for or against federal laws and
>regulations.  OMB Watch, the Alliance for Justice, and several
>other groups, such as the American Association of Museums,
>quickly sent letters and/or called offices to express
>opposition to the provision that affects nonprofits.
>Nonetheless, the provision passed as part of the Chairman's
>revisions to the overall bill and is now expected to go to the
>House floor next week.
>
>The provision was added by the Chairman of the House Oversight
>Committee as a substitute to a campaign finance bill that
>included a "paycheck protection" provision that was focused on
>unions. The Chairman, Rep. Bill Thomas (R-CA), offered his new
>bill today in mark-up as H.R. 3485, the Campaign Reform and
>Election Integrity Act.
>
>The Thomas bill added a provision that requires nonprofit
>organizations to annually ask for consent from their members to
>use their funds for "political activity."  "Political activity"
>is defined as activities to influence elections, federal
>legislation, federal regulations, or educating individuals
>about candidates for federal office or about federal
>legislation, law, or regulations.
>
>Nonprofits would be required to send an annual notice to their
>members indicating how much they expect to spend on political
>activities in the forthcoming year.  Members are then able to
>"vote" if they do not want their dues or contributions to be
>used for such activities. The amount represented by those
>voting in the negative would be reduced from the overall amount
>designated by the nonprofit organization.  It would be illegal
> and enforceable by the Federal Election Commission, not the
>IRS  to exceed the amount permitted for political activities.
>
>All nonprofits organized under 501 of the tax code are covered
>by this provision.
>
>501(c)(3) organizations are currently prohibited from
>electioneering.  But this provision goes beyond electioneering
>issues to cover positions taken on federal laws and regulations
>and education about such matters.  The tax code has limits on
>charitable lobbying, but has no limits on participation in the
>regulatory process.  In fact, nonprofits play a vital role in
>the development of regulatory matters ranging from workplace to
>environmental protections, from consumer to health safeguards,
>and from civil rights to education.  The Thomas provision would
>directly affect nonprofit participation.
>
>Moreover, the definition of political activity in the Thomas
>bill is different than the IRS definition of lobbying.  This
>means that charities will need to keep two sets of books, one
>for the IRS and one for the FEC.  And it means that both the
>IRS and the FEC would now be involved in overseeing nonprofit
>lobbying activities.
>
>Democrats on the Committee complained that they, too, did not
>receive the Chairman's revisions until 2:00 p.m.  As might be
>expected, the nonprofit provisions were not discussed at the
>mark-up.
>
>We'll send you more information as it develops.  If you have
>any questions or comments, contact Patrick Lemmon
> (202) 234-5108 or Stephan Kline
> (202) 822-6070.
>
>--------------------------------------------------------
>Name: Gary D. Bass
>OMB Watch     1742 Connecticut Ave., N.W.
>              Washington, D.C.  20009
>TEL: (202) 234-8494    FAX: (202) 234-8584
>Web: 
>E-mail: Gary D. Bass 
>Date: 03/18/98
>Time: 19:07:52
>To: Multiple recipients of list 
>Subject: Nonprofit Advocacy Attack Part of Campaign Finance Bill
>X-Comment: To subscribe, email your name,address,phone,work
>description to: nonprof-request@RTK.NET
>--------------------------------------------------------
>
>
>
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