Policy Update

Democrats Introduce Lobby Reform Bill, Campaign Finance Rules, IRS Enforcement

1/24/2006

Nonprofit Issues

Source: OMB Watcher
 

Amid Reform Frenzy, Senate Democrats Introduce Lobby Reform Bill

Since the guilty plea by lobbyist Jack Abramoff, Congress has been hurriedly preparing lobby and ethics reform legislation. Republicans announced their ideas at a Jan. 17 press conference that seemed mostly designed to pre-empt the unveiling of Democrats plan on Jan. 18. The Senate Democrats followed their press event with the introduction of a comprehensive bill authored by Minority Leader Harry Reid (D-NV).

In our view, the Reid bill is a solid beginning, but falls short of adequately addressing the culture of corruption that surrounds Washington politics today. To follow is an analysis of the Reid bill and its impact on lobbying generally and nonprofit lobbying specifically. More >>

High Court Opens Door to Campaign Finance Rule Challenge

Less than a week after oral arguments were held the Supreme Court ruled on Jan. 23 that the Bipartisan Campaign Reform Act of 2002's (BCRA) ban on "electioneering communications" can be challenged on a case-by-case basis. The ruling opens the door for the Wisconsin Right to Life Committee (WRTL) to pursue its claim that BCRA is unconstitutional as applied to its grassroots lobbying communications. The unanimous opinion in Wisconsin Right to Life Committee v. Federal Election Commission referred the case back to the lower court to determine if WRTL's broadcast is a genuine grassroots lobbying communication that should therefore be exempt.

For nonprofits looking to the 2006 election cycle, the ruling will likely leave in place the prohibition on ads that mention a federal candidate 30 days before a primary and 60 days before an election, since the Federal Election Commission (FEC) has revoked its earlier exemption for 501(c)(3) organizations, and the lower c ourt may not act quickly enough. '
More >>

IRS to Step Up Nonprofit Enforcement in 2006

Internal Revenue Service (IRS) Commissioner Mark Everson, speaking to the Greater Washington Society of CPAs, recently announced that in 2006 the IRS will increase its enforcement efforts for exempt organizations, building on a trend of the past few years. Among the agency's top priorities, according to Everson, will be enforcement of the ban on political intervention by charities and religious organizations.

The announcement comes as the IRS continues to draw criticism for its Political Intervention Program (PIP) of 2004, which included audits of organizations based on statements critical of administration policies.  More >>