From the Texas Freedom Network Blog | TFN Insider
The IRS has ruled against a complaint filed by the Texas
Freedom Network asking if a tax-exempt, nonprofit foundation improperly
sought to mobilize conservative pastors for partisan electoral purposes
beginning in 2005. In January 2008 we asked the IRS to investigate whether the
Houston-based Niemoller Foundation improperly engaged in partisan political
activity on behalf of Texas
Gov. Rick Perry’s re-election in 2006. You can read our press release at the time here and supporting documents here.
The focus of the complaint was Niemoller’s funding of six “Pastors’ Policy
Briefings”in 2005 (and a seventh to celebrate the governor’s inauguration in
January 2007) hosted by an entity called the Texas Restoration Project. (You can read about the Texas Restoration Project in a TFN
Education Fund report here, pages 13-16. ) We also asked whether Niemoller
had improperly helped distribute political propaganda in support of a
constitutional amendment banning gay marriage, a measure Texas voters approved
At a cost of well over $1 million — costs covered almost entirely by
Niemoller — the Texas Restoration Project briefings attracted thousands of
pastors and their spouses to hear speeches by Gov. Perry as well as conservative
evangelicals and government officials who lined up to praise him. In fact, the
governor was the sole gubernatorial candidate invited to speak, and all of
Niemoller’s money for the briefings came from prominent Perry campaign donors.
Clergy at the events were encouraged to mobilize voters in their congregations.
Then the week before the November 2006 general election, Texas Restoration
Project supporters of Gov. Perry encouraged pastors in a statewide conference
call to get members of their congregations to the polls.
Even so, in a letter dated May 4 of this year, the IRS noted that its
investigation didn’t reveal sufficient evidence for revoking Niemoller’s
tax-exempt status. We disagree with the letter’s conclusions, but we accept the
IRS ruling for now. An unfortunate consequence of that ruling, however, is that
wealthy special interests are likely to be encouraged to funnel more money into
nonprofits that seek to drag churches and other houses of worship into partisan
Kelly Shackelford of the Liberty Legal Institute — the litigation arm of
Plano-based Free Market Foundation Focus on the
Family-Texas (which got $100,000 from Niemoller to help organize the pastor
“briefings” in 2005) — is crowing about the IRS decision:
"This liberal attempt to intimidate pastors has backfired. Not only do pastors
and churches have freedom, but now they know about it."
In fact, however, TFN never challenged the right of pastors to speak out on
moral and political issues of the day. Everyone has that right, including
pastors. Our complaint focused on whether Niemoller violated its tax-exempt
status by funding events that clearly appeared to be for the benefit of electing
a particular gubernatorial candidate. Shackelford’s group, however, has long
sought to weaken legal restrictions on the ability of churches to engage in
partisan political activity. Regardless of the IRS decision regarding Niemoller,
churches still risk losing their tax-exempt status if they intervene in
elections on behalf of candidates for elective office.
We will continue to monitor the activities of Niemoller and the Texas
Restoration Project. And we will continue to expose and oppose efforts to drag
houses of worship into partisan campaigns and use faith as a political weapon to
Read the Opposing Views debate, Should Churches be Tax Exempt?