Federal Court to Decide on Legal Settlement Impacting 70-Year-Old Federal Law Protecting Nonprofits

(image from pexels.com)

The U.S. District Court for the Eastern District of Texas sitting in Dallas on Friday denied a motion to allow a 501(c)(3) American United For Separation of Church and State to intervene in a case that could weaken a 70-year-old federal law that has protected charitable nonprofits, including houses of worship, from partisan politics. The law is known as the Johnson Amendment.

The court previously granted AUSCS leave to file an amicus curiae brief and to participate in oral argument, and the court will continue to consider AUSCS’s arguments, according to the filed denial. AUSCS has a provisional right to appeal from this order.

“Christian Nationalists, with help from the Trump administration, are attempting to eviscerate the popular Johnson Amendment so that they can misuse charitable donations for partisan political campaigns. We’re disappointed that the court didn’t allow Americans United to intervene to defend this federal law since the Trump administration will not,” said Americans United President and CEO, Rachel Laser. “Our attorneys are reviewing the court’s order and considering our next steps. We remain hopeful the court will reject the proposed settlement agreement that attempts to usurp Congressional power to write our laws. Charitable giving should fund charitable work, not partisan politics. The proposal to exempt only plaintiff churches and not secular nonprofits would be unfair, unconstitutional, and unhealthy for our democracy because it would allow churches to become unaccountable political action committees.”

The National Council of Nonprofits released a statement on the denied motion. “For more than 70 years, federal law has protected charitable nonprofits, including houses of worship, from partisan politicking, allowing them to remain one of the few remaining trusted spaces where people come together across political, religious, and cultural divides to solve local problems,” said Diane Yentel, NCN president and CEO. 

 “For more than 70 years, federal law has protected charitable nonprofits, including houses of worship, from partisan politicking, allowing them to remain one of the few remaining trusted spaces where people come together across political, religious, and cultural divides to solve local problems,” said Diane Yentel, president and CEO of the National Council of Nonprofits. “Removing these protections could severely damage the integrity and effectiveness of the entire sector, undermining public trust in local nonprofits whose missions are to serve their community, not partisan political interests.” 

 While faith leaders and charitable nonprofitscanandshouldspeak out on moral, social, and public policy issues that impact their missions, this federal law draws the line at endorsing or opposing political candidates for elected office, according to the statement from NCN. 

 The Internal Revenue Service, National Religious Broadcasters, Sand Springs Church and First Baptist Church Waskom this past July asked the federal court to approve a legal settlement that would bar enforcement of the federal law against the two churches involved in the case. If approved, the legal settlement would allow the two churches party to this case to endorse political candidates from the pulpitwithout jeopardizing their tax-exempt status. Americans United for the Separation of Church and State, a 501(c)(3) organization, had sought to intervene in the case.

 The NCN, along with more than 1,800 organizations (up from the 1,000 cited in the original press release), has urged Congress and the Administration to protect charitable nonprofits, the communities served, and elections from partisan politics. 

Read the court decision here …  https://storage.courtlistener.com/recap/gov.uscourts.txed.232590/gov.uscourts.txed.232590.102.0.pdf