[Gemini Cricket]

Originally Posted by Kevy Baby

Why would they lose their tax-exampt status?

Consequences of Political Campaign Activity

When it participates in political campaign activity, a church or religious organization jeopardizes both its tax-exempt status under IRC section 501(c)(3) and its eligibility to receive tax-deductible contributions. In addition, it may become subject to an excise tax on its political expenditures. This excise tax may be imposed in addition to revocation, or it may be imposed instead of revocation. Also, the church or religious organization should correct the violation.

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(f) Affiliated organizations (1) In general Except as otherwise provided in paragraph (4), if for a taxable year two or more organizations described in section 501(c)(3) are members of an affiliated group of organizations as defined in paragraph (2), and an election under section 501 (h) is effective for at least one such organization for such year, then—
(A) the determination as to whether excess lobbying expenditures have been made and the determination as to whether the expenditure limits of section 501 (h)(1) have been exceeded shall be made as though such affiliated group is one organization,
(B) if such group has excess lobbying expenditures, each such organization as to which an election under section 501 (h) is effective for such year shall be treated as an organization which has excess lobbying expenditures in an amount which equals such organization’s proportionate share of such group’s excess lobbying expenditures,
(C) if the expenditure limits of section 501 (h)(1) are exceeded, each such organization as to which an election under section 501 (h) is effective for such year shall be treated as an organization which is not described in section 501 (c)(3) by reason of the application of 501(h), and
(D) subparagraphs (C) and (D) of subsection (d)(2), paragraph (3) or subsection (d), and clause (i) of subsection (e)(1)(C) shall be applied as if such affiliated group were one organization.

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