Wyden, Nelson, Casey Call on Republicans to Keep Dark Money out of Charities, Religious Institutions

WASHINGTON – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and Senate Finance Committee members Bill Nelson, D-Fla., and Bob Casey, D-Pa., today urged Republicans to protect the sanctity of religious institutions by keeping dark money out of tax-exempt organizations. The U.S. tax code includes a long-standing prohibition on political activity by charities and places of worship. In a letter to House and Senate Republicans, Wyden, Nelson and Casey wrote that efforts to repeal or alter this measure would increase the flow of dark money in politics and force taxpayers to foot the bill for special interests.

Earlier this year nearly 4,500 charitable organizations, including 100 faith groups, sent a letter to the President and Congress opposing any efforts to dismantle or repeal protections for religious and charitable entities.

“Proposals to weaken the prohibition on political campaign activity by charities will effectively lead to the elimination of our nation’s campaign finance laws,” the Senators wrote. “Using charitable causes as shell companies to evade campaign finance transparency and contribution limits would increase the flow of dark money in politics. At the same time, it would force taxpayers to foot the bill for special interests. Hardworking Americans simply should not be required to subsidize the political spending for our country’s powerful few.”

Under present law, charitable organizations, including churches, are exempt from taxation. Charitable contributions to such organizations are also deductible by the taxpayer making such contribution. Since 1954 charitable organizations have been prohibited from intervening in any political campaign.

Full text of the letter can be found here and below.

Dear Majority Leader McConnell, Speaker Ryan, Chairman Hatch, Chairman Johnson, Chairman Brady, and Chairman Chaffetz:

We write today to strongly urge that you not act to politicize our nation’s charities in tax reform or any other legislation. In recent weeks our offices have received requests from nearly 4,500 charitable organizations including 100 faith groups expressing their strong opposition to any proposal that would politicize and undermine the charitable, nonprofit, and philanthropic community by repealing or weakening current protections in federal law that prohibit charitable organizations from endorsing, opposing, or contributing to political campaigns. This letter seeks to echo and amplify these requests from our nation’s charities.

Nonpartisanship is the cornerstone of Americans’ trust in the charitable sector. For more than 60 years the rules prohibiting political activity by charities have guaranteed the public that their valuable charitable donations will be used for social good, not political electioneering. Feeding the hungry, sheltering the homeless, ministering to the spirit, and other critical community services provided by the charitable sector are not partisan issues. However, if even a few charitable organizations violate this principle, it would undermine the credibility of our food banks, homeless shelters, religious institutions, and other critical charitable organizations in our communities. Moreover, a repeal of these safeguards would force legitimate charities to compete with special interest political groups for limited charitable donations.

America’s charities also serve as partners to federal and state governments, efficiently delivering social services to communities via competitive grants. According to the most recent data, charities receive approximately $137 billion annually from government agencies to help fund their important missions. The prohibition against political campaign activity by charities ensures grant recipients are free from political conflicts of interest. These grant programs and the services provided by charitable organizations in our communities are too important to risk by subjecting them to partisan campaign politics.

Proposals to weaken the prohibition on political campaign activity by charities will effectively lead to the elimination of our nation’s campaign finance laws. Using charitable causes as shell companies to evade campaign finance transparency and contribution limits would increase the flow of dark money in politics. At the same time, it would force taxpayers to foot the bill for special interests. Hardworking Americans simply should not be required to subsidize the political spending for our country’s powerful few.

As Congress looks toward tax reform and other legislation this year, we hope you will keep in mind the credibility and independence of the charities that serve our communities. As such, we strongly request you not act to undermine that independence or the critical programs these charities provide.

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