Press Releases

For Immediate Release
4/13/2004
Contact: Naomi Tacuyan
(202) 387-9177, ext. 17
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Federal Election Commission Action Would Severely Restrict Nonprofit Advocacy
Nonprofitadvocacy.org coalition members decry chilling effects of FEC Proposed Rulemaking on 501c Organizations at Congressional Briefing
WASHINGTON-A coalition of six national nonprofit organizations promoting the rights of nonprofit advocacy has condemned the Federal Election Commission's proposed rulemaking to regulate 527 political committees. The coalition announced at a briefing yesterday that the FEC's Rulemaking would severely limit other nonprofit organizations, namely those with a 501(c)(3) or 501(c)(4) status, from speaking on public policy matters, lobbying within currently legal limits, and undertaking nonpartisan voter engagement activities.

While the immediate results of the FEC's efforts would only restrict the ability of 527 political action committees, nonprofit leaders warn of its harmful deleterious effects on 501(c)(3) or 501(c)(4) organizations.

"The FEC is treading into areas which will strongly chill the legitimate-and completely legal-free speech and public policy advocacy rights of America's nonprofit organizations," said Rick Cohen, executive director of the National Committee for Responsive Philanthropy, a nonprofitadvocacy.org coalition member.

Cohen noted, "The potential FEC regulations will fall prey to the ‘law of unintended effects.' The FEC's concern is with political action committees, but the proposed regulations will simply drive out the legitimate, important, and ultimately necessary public policy education and advocacy activities of nonprofits. Whether or not the FEC intends it, the result will be a chilling of nonprofit sector advocacy that will adversely affect nonprofits of every ideological stripe and ultimately adversely undermine the public interest."

The proposed regulation expands the definition of electioneering "expenditures" to include spending for any activity that "promotes, supports, attacks, or opposes" a federal candidate or any public policy issue that refers to the candidate.  This seems to include any criticism or support of a public official who happens to be running for federal office, even if the election is not mentioned or the official is not identified as a candidate.

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NCRP News Release
Wednesday, April 14, 2004
Page 2 of 2

"When ideally realized, democracy provides the space for voices in the minority to be heard, recognized, and addressed. We have much to lose if this balance is off or if the sector is hindered in effectively playing out its role.  The proposed FEC rules would severely hinder our ability to do our jobs," said Sheri Brady, public policy director of the National Council of Nonprofit Associations.

The restrictions would apply not just to commentary related to incumbents in Congress or the White House, but also to elected officials and candidates for public office at the state and local levels.

Lisa Ransom Brown of the Washington Council of Agencies listed examples of the negative impacts the FEC regulation would have on local nonprofits engaged in public policy education and voter registration activities in local communities.

The FEC is undertaking this rulemaking to determine whether the current definition of "political committee" adequately encompasses all organizations that should be subject to the campaign spending limitations, prohibitions, and reporting requirements of the Bipartisan Campaign Reform Act. A similar review of the definition of "expenditure" and its implications, along with the rules for allocating funds for activities involving both federal and nonfederal elections are also a part of this rulemaking.
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