The 3 - July 11, 2021

Non-profit organizations have been making headlines, and in this edition of The 3, I share information about a Christian group that had initially been denied non-profit status, but had that denial reversed. And, a U.S. Supreme Court decision has stated that non-profits do not have to release names of their donors.  Plus, 20 state attorneys general have reached out to the Biden administration, challenging policies announced by two federal agencies regarding special considerations based on sexual orientation and gender identity.

IRS changes course, grants non-profit status to Christian group

The Internal Revenue Service a number of years ago was chastised for punishing Christian and conservative groups.  One group was the Billy Graham Evangelistic Association.  A 2012 USA Today article stated:

In a blistering letter to President Barack Obama, the Rev. Franklin Graham said the IRS targeted the two non-profits he heads with an audit last year after the organizations took out ads urging people to support biblical principles on marriage and in choosing political candidates.

In the letter, dated Tuesday, Graham said in light of recent revelations that the Internal Revenue Service targeted conservative groups with "tea party" or "patriot" in their names, he does not believe the audit was "a coincidence — or justifiable."

Does it sound like history may be repeating itself?  The BGEA publication Decision Magazine reported recently on the case of a Christian organization that had applied for 501(c)(3) non-profit status.  According to the magazine's website: 

In May, IRS Exempt Organizations Director Stephen A. Martin rejected Christian Engaged’s application to become tax-exempt, saying the group’s “Bible teachings” on abortion, marriage and other issues were primarily affiliated with the Republican Party, and therefore disqualified the organization from receiving nonprofit status.

But, there is good news - the IRS reversed that decision. Decision reported that, "Religious freedom law firm First Liberty Institute represented Christians Engaged in its appeal, and on July 7, announced that the IRS had done an about-face and had granted the organization tax-exempt status." The organization's President, Bunni Pounds, is quoted as saying, “I am incredibly thankful to the IRS for doing the right thing, and we look forward to continuing our mission of educating more followers of Jesus to pray for our nation and to be civically engaged. When we stand up, our republic works for all Americans.”

High court says non-profit organizations should not be forced to disclose donor information

And, at least at this point, based on a U.S. Supreme Court decision, Christians Engaged and other non-profit organizations will not have to disclose sensitive donor information. 

Alliance Defending Freedom reported on its website about a Michigan-based organization, the Thomas More Law Center, which has roughly 5% of its donors in California. Back in 2012, "the Attorney General’s Office began to harass the center, demanding the names and addresses of its largest financial supporters."

ADF notes that "A district court trial showed that the office leaked such information like a sieve and created a perfect target for hackers by storing confidential donor information on the internet, where the data could be easily discovered."

The case went all the way to the high court, which said, according to the Alliance, "The court determined that state governments cannot impose blanket donor-disclosure requirements forcing charities and other nonprofit organizations to disclose their donors, which would thereby subject them to the possibility of adverse treatment simply for supporting causes with which some people may disagree."

ADF Senior Counsel and Vice President of Appellate Advocacy John Bursch stated, “Potential givers to charities have good reason to fear being doxed—that is, having their public information spread for malicious purposes...Too many are quick to ostracize, lambast, and threaten those with whom they disagree. Everyone should condemn this behavior—often described as ‘cancel culture’—and we’re pleased the Supreme Court did so today.”

Over 20 state attorneys general call out Administration's LGBTQ policies

In the U.S. Supreme Court's Bostock decision, according to a ChristianHeadlines.com article, "the justices ruled that federal law prohibits discrimination in employment based on sexual orientation and gender identity."  Now, Federal agencies are apparently rushing headlong to broaden the narrow decision.

The article relates that 21 state attorneys general are pushing back against Administration attempts to apply the ruling in areas that the high court may have not intended and have sent a letter to that effect.  For instance, the AG's highlight recently released guidance in response to Bostock.  The article states:

The attorneys general letter charges that the EEOC guidance “appears to ignore” two of three “protections provided to religious employers.” Those two are Title VII of the Civil Rights Act of 1964, which has “express statutory exception for religious organizations” and the First Amendment’s protections of “the employment relationship between a religious institution and its ministers,” the letter says.

The letter also notes that, according to Christian Headlines: "A Q&A on the EEOC website says that 

'use of pronouns or names that are inconsistent with an individual’s gender identity' can be 'considered harassment' in 'certain circumstances.'"

And the article notes that: "The letter also accuses the Department of Education of violating federal law related to sports and the usage of locker rooms and restrooms."  

The letter was issued on letterhead from the Tennessee Attorney General's office and included signatures from the AG's of Alabama and Georgia.