Draft FEC Advisory Opinion Generates Comments from Nonprofits

The Federal Election Commission (FEC) staff has drafted an Advisory Opinion (AO) that could have far reaching impact on nonprofit advocacy. Draft AO 2003-37 was written in response to a request from Americans for a Better Country, a political organization under Section 527 of the tax code, but it could impact all issue advocacy, not just partisan campaign activity. The draft AO broadens the definition of expenditures that “promote, support, attacks or oppose” a candidate for federal office that are regulated by the FEC 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. This approach would sharply restrict the ability of many 527 groups to speak out on public policy matters, even if the election or a federal candidate is not mentioned. The Commissioners will consider the draft opinion by Feb. 19. If approved, it will apply immediately to 527 groups. However, many are concerned about a slippery slope where the FEC language may eventually reach to 501(c)(3) and 501(c)(4) organizations and force them to comply with FEC regulations. If that were to happen, it would greatly undermine free speech rights of charities and other 501(c) groups, such as social welfare organizations and labor unions. The draft AO generated broad response from the nonprofit community between its release on Jan. 19 and the Feb. 5 meeting of the FEC. Most of the written comments on the draft indicated concern about potential over-reaching effect the draft AO could have. For example, one letter was signed by 324 organizations, including OMB Watch, stating, “Making it unlawful to criticize the policies and action of a sitting President or Members of Congress except under the auspices of a registered political committee is one of the most fundamental attacks on the freedom of speech and freedom of association of American citizens ever contemplated by a governmental agency.” Other comments were submitted by the AFL-CIO, the American Lung Association, Independent Sector, the Michigan Nonprofit Association, the National Council of Nonprofit Associations and the Service Employees International Union. The Republican National Committee submitted comments in support of the draft AO, as did campaign finance reform groups Democracy 21, the Campaign Legal Center and the Center for Responsive Politics. However, another strong reform supporter, Public Citizen, filed comments opposing the draft. At the Feb. 5 FEC meeting the Commission decided to delay their decision until Feb. 19 (the legal deadline), to allow time for the Commissioners to review public comments. The FEC is made up of six commissioners, three Republicans and three Democrats. Four votes are required to approve action, including this draft AO. Democratic FEC Commissioner Scott Thomas told reporters that he is “leaning toward the line of analysis” in the draft AO, but said the final AO should clearly states it only addresses regulated political committees. Republicans founded Americans for a Better Country, but their request for an Advisory Opinion listed many of the activities being undertaken by Americans Coming Together, a Democratic leaning 527 political committee. The AO request has been viewed as a partisan attempt to limit voter mobilization efforts that would favor Democrats.
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