http://www.moveon.org/news/fec-gag.html


Extract

EXAMPLES OF SPECIFIC CONSEQUENCES FOR NONPROFIT GROUPS

Under the proposed rules, nonprofit organizations that advocate for cancer
research, gun and abortion restrictions or rights, fiscal discipline, tax
reform, poverty issues, immigration reform, the environment, or civil
rights or liberties - all these organizations could be transformed into
political committees if they criticize or commend members of Congress or
the President based on their official actions or policy positions.

Such changes would cripple the ability of groups to raise and spend funds
in pursuit of their mission and could be so ruinous that organizations
would be forced to back away from meaningful conversations about public
policies that affect millions of Americans.

If the proposed rules were adopted, the following organizations would be
treated as federal political committees and therefore could not receive
grants from any corporation, even an incorporated nonprofit foundation,
from any union, or from any individual in excess of $5,000 per year:

- A 501(c)(4) gun rights organization that spends $50,000 on ads at any
time during this election year criticizing any legislator, who also happens
to be a federal candidate, for his or her position on gun control measures.

- A "good government" organization [§501(c)(3)] that spends more than
$50,000 to research and publish a report criticizing several members of the
House of Representatives for taking an all-expense trip to the Bahamas as
guests of the hotel industry.

- A fund [§527] created by a tax reform organization to provide information
to the public regarding federal candidates' voting records on budget
issues.

- A civil rights organization [§501(c)(3) or §501(c)(4)] that spends more
than $50,000 to conduct non-partisan voter registration activities in
Hispanic and African-American communities after July 5, 2004.

- An organization devoted to the environment that spends more than $50,000
on communications opposing oil drilling in the Arctic and identifying
specific Members of Congress as supporters of the legislation, if those
Members are running for re-election.

- A civic organization [§501(c)(6)] that spends $50,000 during 2004 to send
letters to all registered voters in the community urging them to vote on
November 2, 2004 because "it is your civic duty."

Other potential ramifications include the following situations:

- A religious organization that publishes an election-year legislative
report card covering all members of Congress on a broad range of issues
would be unable to accept more than $5,000 from any individual donor if the
report indicated whether specific votes were good or bad.

- A 501(c)(3) organization that primarily encourages voter registration and
voting among young people will be required to re-create itself as a federal
PAC.

- A 501(c)(4) pro-life group that accepts contributions from local
businesses would break the law by using its general funds to pay for any
communications critical of an incumbent Senator's position on abortion
rights after the Senator had officially declared himself for reelection
more than a year before the next election.

- A 501(c)(3) civil rights group that has been designated as a political
committee can no longer hold its annual fundraiser at a corporate-donated
facility, and it must refuse donations or grants from donors that have
already given $5,000 for that year.

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