Legislation has been introduced in the past several Congresses that would allow churches to engage in at least some campaign activity without risking their § 501(c)(3) status. This report provides an overview of tax and campaign finance laws and discusses these bills. For further analysis of the legal restrictions on electioneering activities by churches, see CRS Report RL34447, Churches and Campaign Activity: Analysis Under Tax and Campaign Finance Laws , by [author name scrubbed] and [author name scrubbed]. Current Law

		Tax Law

Churches qualify for tax-exempt status as IRC § 501(c)(3) organizations. Campaign Finance Law

The Federal Election Campaign Act (FECA), which regulates the raising and spending of campaign funds, is separate and distinct from the tax code. No such legislation has yet been introduced in the 111 th Congress. 2275 (110th Congress)

H.R. 2275 would have repealed the political campaign prohibition in IRC § 501(c)(3). 235 (109th Congress)

Under H.R. 235 , the Houses of Worship Free Speech Restoration Act, churches would not have been treated as participating in campaign activity "because of the content, preparation, or presentation of any homily, sermon, teaching, dialectic, or other presentation made during religious services or gatherings." 235 (108th Congress)

H.R. 4520 (108th Congress)

The provision in H.R. H.R. 2357 and S. 2886 (107th Congress)

H.R. 2357 and S. 2886 , the Houses of Worship Political Speech Protection Act, would have allowed § 501(c)(3) churches to engage in campaign activity so long as it was "no substantial part" of a church's activities. 2931 (107th Congress)

Under, H.R.
In recent years, there has been increased attention paid to the political activities of churches. Churches and other houses of worship qualify for tax-exempt status as Internal Revenue Code § 501(c)(3) organizations. Under the tax laws, these organizations may not participate in political campaign activity. Separate from the prohibition in the tax code, the Federal Election Campaign Act (FECA) may also restrict the ability of churches to engage in electioneering activities.
Legislation had been introduced in the past several Congresses that would have allowed churches to participate in at least some campaign activity without jeopardizing their § 501(c)(3) status. These bills were the Houses of Worship Free Speech Restoration Act, H.R. 235 (109th Congress) and H.R. 235 (108th Congress); a provision briefly included in the American Jobs Creation Act of 2004, H.R. 4520 (108th Congress); the Houses of Worship Political Speech Protection Act, H.R. 2357 and S. 2886 (107th Congress); and the Bright-Line Act of 2001, H.R. 2931 (107th Congress). In the 110th Congress, H.R. 2275 would have repealed the prohibition against campaign intervention in IRC § 501(c)(3). Unlike the other bills, H.R. 2275 would have applied to all § 501(c)(3) organizations and not just churches. No similar legislation has yet been introduced in the 111th Congress.
This report provides an overview of the tax and campaign finance laws relevant to these bills and a discussion of how each bill would have amended current law. For further discussion of the laws restricting campaign activity by churches, see CRS Report RL34447, Churches and Campaign Activity: Analysis Under Tax and Campaign Finance Laws, by [author name scrubbed] and [author name scrubbed].