Jackpot for the Lawyers

501.c.3 organizations are prohibited from participating in political campaigns on behalf of or in opposition to any candidate for public office. It's a good rule, it ensures that tax exempt money isn't used for taxable purposes. It's a fair rule, it assures donors that there are some boundaries around how their gifts are employed. It is an unambiguous rule, it applies equally to all organizations that benefit from exemption. Churches are 501.c.3's, in fact, they have a special status under the Internal Revenue Code, they are automatically granted exemption without filing a 1023, churches don't have to file 990's, and ordained clergy are granted additional benefits for things like housing. Here at BC, there are strong feelings about the free pass that churches get on reporting rules but that is a post for another day. Today's story in the LA Times about the pastors planning to break the law this weekend and intervene on behalf of (or more likely against) certain Presidential candidates enrages us. BC wonders,are these pastors getting checks ready to pay the American taxpayers back for the benefits they have received? Or are they just going to take those tax exempt dollars to pay their legal fees? Who wins here? Our bet is people who bill at $600 an hour.