This country long ago decided that churches (temples, mosques, etc.) were a force for good, and therefore should not be taxed. A debate could be had on whether that is justifiable, but the fact is that these religious institutions are still not taxed. But this exemption from taxation for churches is not absolute. Like other laws, there are exceptions to this, and rules that must be followed to maintain that tax-exempt status. And one of the things the churches must do to keep their tax-exempt status is to stay out of politics. They can organize bipartisan get out the vote efforts, but they cannot do anything to favor one candidate or political party over another. Here is the relevant sections of tax law that apply:
The Prohibition on Political Campaign Intervention Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. The prohibition applies to all campaigns including campaigns at the federal, state and local level. Violation of this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. Those section 501(c)(3) organizations that are private foundations are subject to additional restrictions that are not described in this fact sheet. What is Political Campaign Intervention? Political campaign intervention includes any and all activities that favor or oppose one or more candidates for public office. The prohibition extends beyond candidate endorsements. Contributions to political campaign funds or public statements of position (verbal or written) made by or on behalf of an organization in favor of or in opposition to any candidate for public office clearly violate the prohibition on political campaign intervention. Distributing statements prepared by others that favor or oppose any candidate for public office will also violate the prohibition. Allowing a candidate to use an organization’s assets or facilities will also violate the prohibition if other candidates are not given an equivalent opportunity. Although section 501(c)(3) organizations may engage in some activities to promote voter registration, encourage voter participation, and provide voter education, they will violate the prohibition on political campaign intervention if they engage in an activity that favors or opposes any candidate for public office. Certain activities will require an evaluation of all the facts and circumstances to determine whether they result in political campaign intervention.
Unfortunately, many churches and ministers (usually right-wing fundamentalists) think churches are special and should be above any laws. And in the last election, many of them intentionally violated the law -- even to the point of having a special Sunday nationwide where hundreds of ministers preached a partisan political sermon from the pulpit.
This blatant disregard for the law should have resulted in an investigation of each of those churches by the Internal Revenue Service (IRS) and the revoking of the tax-exempt status for those churches. But the IRS did nothing -- probably out of a fear of being branded as anti-religious (since the fundamentalists love to claim they are victims).
This IRS inaction was inexcusable -- since the government is required to enforce the law (even when it might not be popular to do so), and besides, several polls have shown that most Americans don't want politics being preached from the pulpit (including most christians). After seeing this failure of the IRS to act on behalf of the citizens of this country, the Freedom From Religion Foundation (FFRF) filed a lawsuit against the IRS.
We now have some good news. On July 17th that lawsuit was settled, and the IRS has promised to investigate any church breaking this law. The IRS is currently being forced to not hold any investigations of any kind while the House Committee chaired by Rep. Issa investigates the bogus charge that the IRS targeted conservative groups. The investigations will start as soon as that committee finishes its work (although you can bet the Republicans will try to draw out that process as long as they can).
That committee must end someday, and then we can expect the IRS to diligently go after the churches who violate the law. And of course, we'll probably hear a lot of whining then about being "victims" from the fundamentalist right. Personally, I don't have a problem with churches engaging in partisan political activity -- as long as they are willing to pay taxes like everyone else. No one, even ministers and churches, should be above the law.