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	September 2, 2004 .................... LCMSNews -- No. 67

	Tax-exempt code prohibits political endorsements

	As this year's general election approaches, the Synod's tax and
compliance director is reminding congregations and Synod entities that
any efforts to "educate voters" must comply with tax-code requirements
concerning political-campaign activities.

	Karen Sansone, director of the Tax and Compliance Section of the
Synod's Accounting Department, noted that the federal tax code
"absolutely prohibits churches and other religious organizations from
endorsing or opposing any candidate for public office."

	Whether a particular activity constitutes prohibited political
activity depends on the circumstances in each case, she said. For
example, organizations may sponsor debates or forums to educate voters,
but such an event may not show a preference for or against a particular
candidate.

	Sansone said that the political-activity prohibition does not
restrict the free expression by pastors and other leaders who speak for
themselves. But those who commonly speak or write on behalf of the
tax-exempt entity must clearly indicate, at the time they do so, that
their public comments in connection with political campaigns are
strictly personal and not on behalf of the organization they represent.

	Partisan comments by employees or representatives of synodical
organizations aimed at political candidates must never be made in
official organization publications or at official church functions.

	Sansone warned that the congregation or Synod entity could lose
its tax-exempt status and/or be assessed an excise tax if the Internal
Revenue Service finds it violating this prohibition. And, she added,
contributions to organizations that lose their tax-exempt status are not
deductible by donors for federal income tax purposes.

	For more information, see IRS Publication 1828, "Tax Guide for
Churches and Religious Organizations." This and other information about
the political campaign prohibition is available at www.irs.gov
<http://www.irs.gov>  .


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	If you have questions or comments about this LCMSNews release,
contact Joe Isenhower Jr. at joe.isenhower@lcms.org or (314) 996-1231,
or Paula Schlueter Ross at paula.ross@lcms.org or (314) 996-1230.

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