IRS denies Christian Coalition's bid for tax-exempt status

The Associated Press

WASHINGTON -- The Christian Coalition, struggling to regain influence and contributors, is undergoing a major reorganization triggered by the denial of its request for tax-exempt status. Founder Pat Robertson said Thursday the organization would "continue to be a force in American politics."

The Internal Revenue Service first denied tax-exempt status to the group last year in a ruling kept under wraps pending appeal. The Christian Coalition was notified in recent weeks that it would lose the appeal and decided to withdraw it. The IRS concluded that certain Christian Coalition activities were too partisan for the group to enjoy tax-exempt status. Its most visible activity is distribution of voter guides at churches around the country; some 72 million were given out in 1998, officials said. As a result, the coalition won't enjoy the tax benefits of a nonprofit religious organization. Some critics said the IRS ruling could cost the group grassroots support and will require it to observe legal limits on contributions. "It's long awaited, and it's very appropriate," said Carole Shields, president of the liberal People for the American Way. "We think everybody ought to play by the same rules. A lot of what they want to do is properly done by a political action committee." Christian Coalition officials estimate the organization will owe the IRS between $300,000 and $400,000 in back taxes. Coalition spokesman Mike Russell said the organization's changes would include creation of a new Christian Coalition International, which would form a PAC and engage in partisan activity including candidate endorsements and political contributions. Russell said the Christian Coalition of Texas, which is currently a tax-exempt group, will be renamed Christian Coalition of America and will limit its activity to nonprofit "voter education." "The organization has been dramatically reshaped but its mission statement remains intact and it will continue to do the things it has been doing since it formed, which is recruit pro-family activists, draw people to the polls in record numbers for elections and educate," Russell said. "Christian Coalition of America will continue to be a force in American politics and will remain a prominent fixture on the political landscape as the nation's number one pro-family, pro-life organization," said Robertson, the group's president. Nonetheless, the IRS decision adds to the problems faced by the Christian Coalition following the departure two years ago of Ralph Reed as executive director. Amid waning influence and dips in fund- raising, the coalition also faces challenges from other religious- focused groups, such as the Family Research Council, that want to emerge as the next powerhouse of the Republican right wing. "They are clearly trying to get their sea legs under them and get back into the discourse," said Rich Galen, executive director of the GOPAC fund-raising organization. Reed said he believed the IRS ruling wouldn't cause many additional problems for the organization. "I don't really see this as having a lot of impact," he said. "People are most concerned about whether we were we out there fighting the good fight. They don't care about names."

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