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COALITION of AFRICAN-AMERICAN jer 24,2020 | PASTORS Pt Internal Revenue Service Tax Exempt and Government Entities Division Exempt Organizations Examinations 4041 N. Central Avenue Suite 112, M/S 4900 PHX: JB Phoenix, AZ 85012 RE: Coalition of African American Pastors, USA Cea a: ‘As you know from our phone conversation on November 5, 2020, we are in receipt of your communication dated October 27, 2020 recommending revocation of our 501(c)(3) exemption status. After our call, my Dad was hospitalized and died on Friday, November 13, 2020. His funeral was November 20, 2020. We asked for more time to handle this Internal Revenue Service (IRS) matter but were informed that it was highly unlikely that it would be granted. Therefore, this letter will serve as a formal protest to your 990 Report for tax years 2016, 2017, and 2018. Most, if not all, of your supposed examples of electioneering are not prohibited political intervention at all [see JRS Regulations, Section 1.501(c\3)- 1(3) (iii)|. For example, asking people to “leave the Democratic party...” should not be considered a political campaign intervention. We have made this same statement many times, regardless of whether an election was occurring or not. Further, statements attacking the Democratic party and its candidates’ views in general are not necessarily electioneering. Our leaders still have the right to state the truth as they see it, whether there is an election or not. Speech allowed before an election does not magically become forbidden during an election. As a religious organization, we believe your interpretation of the law and your attempt to revoke our tax-exempt status based on these statements is nothing short of a full- scale assault on the First Amendment of our Constitution, But I will not here go through every falsehood and inaccuracy in your report. The more far-reaching issue is this: even if we were to grant that some of the statements in our newsletters could be considered “forbidden political intervention” by the IRS, we boldly and with no hesitation assert here that those regulations themselves are unconstitutional both facially and as applied to our organization. Why is a ban on political intervention as applied to the Coalition of African American Pastors unconstitutional? In 1954, the “Johnson Amendment” ostensibly gave the right to the government to muzzle our pastors’ ability to speak freely from the pulpit and 27120 Fulshear Bend Drive, Suite 900-181 | Fulshear, TX 77441 ‘ | Info@caapusa.ora. beyond while still maintaining their tax-exempt status. However, this amendment has rarely, if ever, been used to revoke the tax-exempt status of a liberal religious group. Its enforcement seems selective such that only one side of the political debate has anything to fear. Libera/ black pastors are not threatened with revocation of their tax- status; when /ibera/ black pastors speak up for Democratic candidates, the IRS does nothing. But when Bible-believing pastors say that it is time to leave the Democratic party, the IRS pounces. Given the clear precedent of the IRS targeting conservative organizations by releasing their donor names and impeding their 501(c)(3) applications (see NATIONAL ORGANIZATION FOR MARRIAGE INC v, UNITED STATES), we view this threatened revocation of our tax-exempt status as a politically- motivated attack on our ability to speak and act freely as pastors. In America, the government and its agents do not get to encourage one side of the political debate while attacking the other. Further, we assert that the Johnson Amendment and any interpretation of the law that would force pastors or other non-profit leaders to choose between their beliefs and their tax-exempt status is facially unconstitutional. Our freedom of speech is seriously undermined when any comment that a leader may make in their publications, any project that brings to light the injustices of a political party, any statements that shed light on the corruption of a candidate—no matter how small a part of the overall organization's mission—could disqualify that organization from being recognized as a 501(c)(3). Never mind that only a small portion of a church or church organization's time and money is spent speaking about politics. Never mind all of the educational and spiritual work we do. If we make a statement the government deems ‘political intervention,’ we risk losing the status that our donors rely on when they give us their hard-earned dollars. This is wrong, un-American, and unconstitutional. As African American pastors, we know from our history what an attack on civil rights looks like. We want the government to know—in no uncertain terms—that we will not allow ourselves to be shoved to the back of the constitutional bus. Under penalty of perjury, I declare that I have examined the facts stated in this protest, including any accompanying documents, and that, to the best of my knowledge and belief, they are true, correct, and complete. Respectfully, i Willie G Owens Department of the Treasury Date Internal Revenue Service ‘Tax Exempt and Govarnment En taper ty tame: 2G Exempt Organizations Examinations = 1100 Commerce Stcot MS 4900 DAL = Dallas, TX 75242-1100 390 ‘Tox potleds ended: ‘December $f, 2016, December 24, Coalition of African American Pastors USA 2097 & December 31, 2018 Attention: Officers Person ta conta 27120 Fuishear end Drive, Suite 990-18) Name: Fulshezt, TX, 77441 1D number ‘Telephone! Fal Address: 4044 N. Oentral Ave., ‘Suite 172. MWS 4900. PH: Phoenix, AZ 85012 Manse’s contact information: ‘Name: AD number Teerhone Rasponss due dete: 12772620 CERTIFIED MAIL~ Return Receipt Requested Dear Coalition of Afiican American Pastors USA: Why you're receiving this fetter Ifyou agree ; Ifyou navea’t already. please sign the enclosed Form GUI, Coinéent to Proposed Action, and return i to the contact person shown at the tap of this letter. We'll issue a final adverse fetter determining that you aren't an organization desoribed in {RC Section 501(¢)(3) for the periods above, ‘Ifyou disagree 1. Request amecting or telephone ccnference with the manager shoyu at the top of this letter, 2, Send any information you want ws to consider. 3. File a protest with-the IRS Appeats Office. [Fyou request a meeting with the manager of send additional information as stated in | and 2, above, you'll stifl be able to file a protest with IRS Appeats Office after the meeting or after we consider the information. ‘The IRS Appeals Office is independent of the Exerap! Organizations division and resolves mast disputes informally. 1f you file @ protest, the auditing agent may ask you to sigh a consent to extend the period of {imitations for'assessing tex. This is to allow the TRS Appeals Office enough time fo consider your case For your protest to'be valid, it must contain certain specific information, including & stacement of the faots, applicable jaw, and atguments in support of your position. For specific information needed for a valid protest, refer to Pablication 892, How. to. Appeal au IRS Determination on Tax-Excmpt Stains. Fost Tiaek Mediation (FTM) veferréd to in Publication 3498, The Sxainination Provess, generally doesa't apply now that we've issued this letter. Letior I (Rev. 8-2019) Calaiog Heme 4, Request technical advice fiom the Office of Associate Chief Counsel (Tax Exempt Govetnment Entities) ifyou feel the issue hast*t been addressed in published precedent o has been treated inconsistently by the TRS. Iryou're consiceting requesting teclinical advice, contact the person shown at the top of this letter. Ifyou ‘disagree with the technical advice decision, you will be abfe to appeal to the IRS Appeals Office, as caplained above. A decision made ina technical advice memorandum, however, gencrally is Gnal and binding on Appeals. If we doxi't hear fram you Ifyou dont respond to ths proposel within 30 calendar days from the date oF this letter, we! issue. final: adverse determination leer. Contacting the Taxpayer Advoente ONiice is a taxpayer eight ‘The Toxpayer Advocate Service (TAS) is an independent organization within tho IRS that ean help protect your taxpayer rights, TAS caw offer you help ityour tx probiem is eausing a haréship, or you've. tried but haveult been able-fo resolve your problem with the IRS. 1f you qualify tor TAS assistance, which is always free, TAS Will do everything gassible to help you. Visit or call 877-177-4778. Additional informatfon ‘You cati get'any of the forms and publications mentioned in this letter by visiting our wet ‘won irs. gov/forms-pubs or by calling 800-TAX-FORM (800-829-3676). If you have questions, you can contact the person shown at the inp of this letter. rector, Exempt Organizations Examinations Eneloswes: ‘This levier, Forin 886-A (COAL_F990_1 (1), AanelimanT Am & Form 6018, F4621-A, Publication ("Pub") $92, Pub 3498 Letter IN (Rev, 8.2019) Cataos Kee Department of the Treasuyy : tntemalRevenue Service: Schedule nuniber or exhibit Form BBG.A F990. 1G} (ey 2017) , Explanation of items Name of taxpayer ‘Tax Identification Number ast # aigiés) | Year/Pened ended Coitition of Aftican American Pastors USA’ = heuer sonar Naa Issues L, Whether Coalition of African American Pastors USA (“Organization”) participated or jotervened, directly and/or indirectly, in atly political caripaign on behalf of or in. opposition of. any candidate for public office? 2,» . . Whether the Oganization’s Internal Revenue Code CIRC”) Seotion: (“See."} 501(c)(3) exempt status'should be ‘evoked on the basis that it conducted political activities prohibited by IRC Sec: 501 @)@)? Facts: -o" . Thé Céalition of Afiican Ainerican Pastors USA'(“Oiganization”) was founided by Reverend Willian Owens (“President”) and-his wife, Deborah Owelis (‘Director’?}; arovind 2012, This infornation reconciles with records CIDRS") submitted to the Internal Revenue Service (CIRS”); the Orgattization’s status was éffective suly 2012. Per an attachment to the Grganization’s Form 1023, titled “Activities and Operational Tnforination record”, the Organization's stated purpose is to “deliver the Gospel of Jesus-Christ. ina very practical manner with biblically based living and lifestyle management practices. through group echication, sentinars, conferences, and electronically”. Per Form 990 (“F990”) for December 31, 2017 (2017) and Deceriber 31,2018 2018"), Part I, Summary, the O:ganization’s missions described as: “Coordinate, organize, and facilitate speaking arrangements fo deliver biblically based educational sessions on living and lifestyle management in churches, hotels, auditoriums, schools etc. We deliver the message in the form of group meetings. In a separate letter to the IRS, the Organization stated its primary purpose is to advance religion; Pec Form 990-BZ (“P990-E2”) for the period ending Deceniber 31, 2016 2016"), as weil as, for the 2017 and 2018 F990, Schedule A, Part I, Reason for Public Charity States, the Organization indicated shat it is: “An organization that noxmally receives (1) more than 33 1/3% of ite suppoit front contributions, merhberstiip fees, and gross teceipts from activities related fo its exempt fimotion...”. Per the Form. 1023-and-other records, the Organization is exempt under IRC Sec, 501(c)(3); dnd, is further exempt under IRC Sec, | Page neste gov Foon (eon 520405 operant Teastry-llamal Rave Senco ~ ] Schedule auraber or sant Form 886-A. | , Department of tha Tr uy Iniamal: Revantre Servic ee to (Mey 2097} Explanation of Items. - Name oftampaver - Fax tiontncation Numer fas aigis) | YoarPariod ended Coalition of African Ametican Pastors USA {| Bremer 2h 006 Bewnbe -2007 501¢a}(2). This information reconciles with IRS records, Note: A copy of the Organization's attachment to Form 1023 (titled “Activities and Operational Information record”) is attached to Form.886-A under the titled “Aitachmeat 1". Per records, the Organization regularly hosts and/or attends events, x9 well as, c1sates and distributes writton and/or ofectzanie noveslettors, brochures, paniphiets, and articles {(*publications”). In general; publications are distributed to the;public. Per the website, interested parties mtay sign up to be membets of the Organization, Benefits of membership include: “Membership card, membership news, email updates, invitations] to.aitend special events, “discounts on CAAP events (when applicable)”, The Oxganization’s activities and operations are discussed in groater detail further below. No record was provided showing exactly how many ovents the Organization held in 2016, 2017, and/or 2018, Por the-F990-BZ and F990s, tho Organization generated most of its income for2016, 2017, and 2018 from contrifsutions, gifts, and grants. Pes oral testimony and other recards, the and, Organization’s sources ofincome were (in part) genecsted via general coriations; donations in exchange for membership, and donations in exchange fora copy of the latest book written by the Organization’s Presideat, Per the 2016 F990-EZ, the Organization’s expenses included (bat were not limited to): grnats and similar amounts, professional fees and other payments to independent contractors, occupancy, rent, uilitics and meintonanes, and other expenses. Por the 2017 and 2018 F990, expences included (but were nof limited to): office expenses, occupancy, travel, conferences, and contract labor. A and Opexations Ponits website (under the “about us? section}, the Oxgonization describes itself as follows: “Christians working together to promote the values of Faith. and Family(] ‘The Coalition of Afiican American Pastors (CAAP) ise national black-led organization, dedicated to the propagation of Biblical values, Cotsen Numb = Pago sts. Fom av. 82017 rom B86-A, Denerinent fhe Trastry= itera Revere Seles a (Mey 2017) Explanation of Items - Taine oftexpaver. . [Tax Koa cr eat cs | VeasPeroc ented Coalition of African Amérivan Pastors USA. i eee ear eR ‘As part of that mission, CAAP takes policy positions that suppart our core sninciples, especially regarding defense of religious Sivedoti,:ramriage, the family, and other issues « thal are critical fo our community, CAAP is not affiiated with any politicel patty or religious dencmination, We welcome beliovers of all races and beckgsomsids to join with us.cs.we work to encourage Christians everywhere to take-a‘atand for their belief’ end convictions. » ‘We here at CAAP use out platform fo educate citizens about issvies that our faith, family and freedom. CAAP-does not endorse, support, aroppose any candidate for political office. Any méntich of public figures herein is purely for discussion and educational purposes and should aot be interpreted as a statement of electoral support or opposition.” ‘The Oxgenization’s description, within the “about us” section ofits website; is supported Gin part) within seperate records cbtained throughout the evamination: ‘These records inelude various publications. Per thé publications, the Organization has a histoty of discussing verious topics Said t0 be focused.on rstigiolls freedom, marriage, arié the funily: The publications also show the Organi ion has a history of regularly discussing, politicians, politicians’ policies, and political-partics: Per-numerous 2016 publications, as well as, few 2017 and/or. 2018 publications, the Organization spoke in favor of one political party and against ancthor politics! party (among other things). In 2016, which wae a Prosidential election cycle, the Organization regularly encouraged the public to “denounce” the Democratic party end regularly encouraged the public vote for the Republican presidential candidate, ‘The following saniple quotes (below) were obtained from the Crgentzation's publications. y Samplo Quotos No dato— “.. thanks for the faith you have placed in our ministry and the werk we do, Our miewsage-f0 miove-pedpte of faith--and espécially black. voters~“away-fiom the failed potioies of the Page 3 ‘alr gow Form (Rov. 8.0017} Dopainen ofthe Teasury-nioma Revenue Seve [Schedule number or exhibit en i ¥590_1 0) (May 2077) Explanation of Items TWame of expayer “Tax Mientfcaion Naraer fast # gta) | YeaiPeiod ended Coalition of Aftican Anvetican Pastors USA | | Dicer 3, 216 Deeb 1707.5 ‘Democratic Party is working! We know-that cur efforts had an impact on this past election.” This is suppocted within Allachment 2, pago 103. No dato» > “Is likely you voted for Democrats in thé past possibly because you were fold that the Democratic Patty is “for” African Americans. And you may be considering voting Democrat again, despite the fact that you dost tke the riominee..1 am here to.ask you to think again. Now fs the time for Aftiont Amecican voters to abandon the Democratic Party!” “And so 1 have devided to abandon the Deimocrats.” Thisis supported: within Altachnient 2, pages 22 through 24 end page 50: i Circa 07/27/2016 — “On Monday, held a press conference aging African American and other mitority voters to take a gacd, hard-look-at what the Democratic Party is telling us with the nomination of Hillary Clinton, A Hillary Clinton Presidency would be a.disastrous continuation ofthe led policies that have destroyed the moral fabiic of America.” “GAAP has leunched the "Justice Pledge" for those citizeris. who feel they. can no Lloriger ignore the Demooratic Party's endorsement of policies ‘hat ove antithetical to oun-value:.In signing the Justice Pledge, wwe promise that- we will withdraw opr sutomiatic support of a particular party...” This is supported within Attachment 2, page?. Circa 09/29/2016— “., .president of The Coalition of African American Pastots (CAAP), will convene-at the National Press Club in D.C. Thursday, September 29, 2016 @ 10:00AM te call for the EXODUS. from and denouncement of the Democrat Party.” This is supported within Attachment 2, page 21. Cirea 10/03/2016 — if things loos bad now, just consider. what the situation will-be during # Clinton presidency.” ‘This is supported within Attachment 2, vage27. cosog timo Page -noniegev Fo 1 dheus2017) ° a 7 | Sched number or anki Form 886-A ‘apartment cho Treasury = Inderal Revanuse Serica . 9901 (1 (hey 2017) Explanation of Items 208 Name of axpeyer 7 Tax ientitcalon Number fost seipis) | VeauPeriod ended Céalition’ of Aftican American Pastors USA! z_ December 34-2016 December 31-2047, Circa 10/24/2016 — “This is why welre rising money to place ads about the betrayals of the Democratic Party?” This js supported within Attachment 2, page 55. Cirea 10/28/2016 : “What would'a Clinton presidency look like for Christians? "Not good” is an understatement.” This is supported within Attaéament 2, page 61. Gira 112016 — “CAAP is talking directly to black voters.and people of faith; telling thom that the Democratic Party no longer haz room for them.” This is supported within Attachment 2, pago 66 Circa | 1/82016— “Today'Is the Day! Make Your Vote Count!” “Pleaze also seimember‘o tell-friends and family 20 get oul and-yote: Remind thein also of whet is atstake this election. And send them CAAP's new videos to help demonstrate.why we can ‘no Jonget allow ourselves te be lied to and used by the Domocnitic Party.” “We will keep sproading this méssage noross the country after the polls close and for yeors to come.” “Some of you say have reservations about supporting Donald Trump. Can we trost him? Can we cell ourselves authentic Christians and accept compromise in polities? ‘To those wis have these caricems; i would like-a ‘share a message I received’ from Mr. Foster Friess, a fonig-time friend and supporter of CAAP: He writes: Isn't our authenticity increased ‘whea we enecurage another in his/her spiritual jouriey? Most observers doubt Trump bas asked Jesus to take charge of his life” “We know how much Hillary Clinton despises Ghvistiais and ourbdliofs, We also kitow that Donald Teuiop inay:hot be the peifféct candidete, but that he is our ‘vest hope fo prevent shi further marginalization of faith and the attack on-famnily. Tewnxp asked us to give him a chance to he 2 great President. Hillary has asked ius:for the chanvé to continue the pro-abortion, anti-family, anti-faith, pro-LGBT policies of the last eight years, Ibis, as has ‘been pointed out, a nobraines.” This is supported within Attachment 2, pages 71 trough 73. | Page S snisor Fam aren. 520179 886. Davartaente/ the Testun Iam Revenue Serise [Scherle oombora orhibk oe i F990 1.0) Moy 2017) Explanation of.Items Namie of taxpayer Taxcidenticatio Number fst # agi) | VearPetod ended Goslition of Afiican Ametican Pastors USA {_| Powe tpawnien Sie Circa 11/972016— “We did it! Thank you for helping CAAP make a difference,” “Today, CAP issued a pioss release congratulating Mr. Trump in which I said: {Donald Trump asked black voters and Chsistions fo give him ¢ chance and that’s oxactly what we did. The Coalition of African American Pastore launched a sustained campaign to persuade black voters to stop letting themselves be used by the failed policies and empty promises of Democratic politicians. It is cleat that-this is a message that resonated with many voters and helped make Mr. Tromp our next president.”” “And the message we spread through our election sds--that black voters should abandon the Democratic Party--isn't going away. We wall still urge voters (o follow values over party ... because thia won't be the only clection that matters. We plan to continve promoting our new videos; arid-you cam-help by-clicking here to make.a donation. After receiving such a good response fo these ads, we won't discontinue them as long as-there are people who needto hear end think about that message.” “November 9, 2016—Today, Rev. William Owens, President of the Coalition of Aftican American Pastors, congratulated President-lect Trump forhis stunning victory. Rev Owens, who had urged black voters to abandon the Democratic Party and vote their values in this election, acted in his capacity as'a'private citizen to cidorse Trump for President.” This io supported within Attachment 2, pages 76 through 78 and page 81. be [End quotes] “ 5+. Copies of the Organization's publications (with political activities) ftom which the sample quotes were, found are provided within Auachment 2; Note: These records are not alle: + encompassing; there-may be, other records showing the Organization's political activities. Also; many of the Orgenization’s political staterients found within Attachment 2 wore consclidated into Attachment 3. 1. No record was piovided showing the Organization filed 4 Form:1120-POL, When asked, the Organization stated that it was not required by a separate individual and/ar-entity to discuss certain topics within its publications, Law: coacp we Page seevssgotrom pron 52007 form BBG-A, Deperinent of theTreasuryIniemal Revenue Service [Schedule sweater or axhbt " " F990 "1 (1Y. ‘Mey 2097) Explanation of Items AO. Name of texpayer 7a Ta'Hentifeation Number gest 4 ots) | VearfPeriod ended i Coalition of African American Pastors USA™ | | Tagen 3.2046 Depepber 2]. 207, ‘Beeman 7908 Titeral Revenue Code't“IRG”) Section (“See.") IRC See, 501 (@)(3) include comporations, aiid any community chest, fund; or foundation, organized and opsrated exclusively for religious, chatitablo, scientific, testing for public safety, literary, 6: educational. purposes,or to fostor national or intomational annatoae sports competition (bat only if no part of its activities involve the’ provision of athletic facilities or equipment), or for the prevention of cruelty fo children or éaimals, no part of the net earnings of which inures to. the benefit of any private shareholder or individual, no substantial part of the activities of which: is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise: provided: in subsection (hi), and which does not participate ili, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition 0) any candidate for public office. IRC Sec. 4955(a)(1) addzesses initial taxes on the organization as: There is hereby imposed on each politicat expenditure by a-sectién SG1(c}(3) organization a tax-ejjual to 10 percent of the amount thereof, The tax imposed by this paragraph shall be paid’ by thie organization. IRC Scc..4955(a)(2) addresscs initial taxes.on the management as: There is héreby imposed on, the agrogment of any oiganizaticn miniioger to the making of any. oxpenditare; knowing that it ia a political expenditure, a tax equal to 244 percent oP the amount thereof, unless such agreément is not willfill and is due fo veasonable’cause: The tax imposed by this patapraph shall be paid by’ any organization manager who agreed to the making of the expenditure. IRC Sec. 4955(0)(3) states that the tems “curreétion” and “correét” meat, with respect fo-eny political expendinnce; recovering part or all.of the-eipenditurs té the extent recovery is possible, cstablishinient offsafeguards to provont fature political oxpenditures, and whore full recovery is not possible; sich additional corrective avtior’ as is piescribed by the Seeretary:by regulations. , . ‘Treasuny-Regulation (“Treas Reg.) Catdogsunvce —Pag07 sav Form fe $2017) (Department of the Treasury - Inlemal Revenue Service. Schedule nuraber or exhibit Fein 886-A " 7990. 1) (May 2017) Explanation. of Items Name of taxpayer : “Tax Mlenificaion Nuniber (oat + ata | VearPedod ended Coalition of African Atnetican Pastors USA’ = Premera, 206 sere S207 & ‘Teas, Reg. Seo. 1.501 (2)(3)-1(e}(3)4ii) provides that conducting activities, directly or indirectly, ‘on behalf of or in opposition to a candidate for public office, constitute participation or intervention in & political campaign: This sccticn also defines an “action” organization as an > oxgonization that participates of intérvenes, directly or indirectly; in-any political eamspaign on. behalf of or in opposition to any candidate for public office. The term “candidate for public office” is:definied as an individual who offers himself, or is proposed.-by others, 2s a contestant for an elective public-office, whether such-office be national, State, or local: The regulations further provide that activities that constitute participation or intervention in political campaign on behalf of or in opposition fo:a candidate include, bul are no! limited to, the publicetion or distribution of wnitten statements or the making of oral statements on-behalf of or in opposition, fo euch & candidate. Revenne Ruling (Rev, Rul.” Rev, Rul, 2007-41; 2007.25R.B, (June:18, 2007) Organizations that dre exempt from income tax under sectiosi 501(a) of the Internal Revenue Code as organizations described jf section 501(¢)(3) may not participate ia, or intervene in. (including tho publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office. Note: Rev. Rul 2007-41, 2007-25 LR-B. (Fune 18,2067) aléo piovides multiple key, factors (facts'and circumstances) in making determinations with respect to advocacy. versus: |. political campaign intervention. Additional note: examples of key factoss include (but are not limited to) the following: . 4 IRC See, $01(0)(3) orgenizations are periitted to conduct cortain voter ednoation activities (including the presentation of public forume.and the publication of voter edyccticis guides) ifthey ave-cerried out in anon-partisan maaner. In addition, section '501(¢)(3) organizations may encourage people fo participate in the electoral process through voice registration and gel-out-the-vote drives, conducted in a non-partisan manner, On the other haid, voter-education or registration activities conducted in a ‘biased manner that favors (or cpposes) one or more candidates is prohibited, Cabeg roe Pages vane gi Fon (e0.92007 ran BBO-A <7 parental fe Hien el Revenue Sense a (May 2017) Explanation of Items Name of taxpayer 7 Tax Heniicaion MuBsr fast ts) | VeariPoiod anda Coalition of African American Pastors USA: | | Decer 34 2016 eso ANG IRC Sec. 501(0)(3) organizations may take positions on public policy issues, including issues that divide candidates in an election for public office. However, IRC Sec. 501(6)(@) organizations must avoid any issue advocacy. that functions as pulitical ‘campaign intervention. Even if statement does not expressly tell an audience to vote for or ageinst a specific omcidate, an orgenization delivering the statoment is at risk of violating the politice] canipaign intervention prohibition if there ia any message favoring or opposing a candidate, & statement can identify a éandidate not only by stating the candidate's name imt alzo by other means such as showing.a picture of the candidate, referring to political party affiliations; or other distinctive featutes-of a candidate's platfoun or biography.-All the facts and circumstances nest to be considered te determine if fhe advocacy is political campsigniintervention: “The political campaign intervention prohibition ie not intended to restrict free expression on political matters by Jeaders of organizations speaking for itiemselves, as individuals. ‘Nor ate leaders prohibited from speaking about important issues of public policy. However, for their organizations to remain tax exempt under section 501(0)(3), leaders cannot inake partisan comments in official organization publications or at official functions of the ofganizetion, . Section 501(¢)(3) organizations miay-take positions on public policy issues, including issues.that divide candidates in an élection-for public office. However, section 501(0)3) organizations must evoid any issue advocacy that functions as political campaign intervention. Even if. statement does not expressly tell an audience to vote for or against a specific candidate, an organization:delivering the statement is at risk of violating the political campaign intervention prohibition if there is any message favoring or opposing 4 ‘candidate: A statement can identity 2 candidate not only by stating the candidate's name * Init also by other means such as showing a picture oftthe candidate, referring to political party affilistions, or athe? distinctive features of a candidate’s platform or biography. All cating nie Pogo 9 ts gov Fam (ee. 2017 Form BBG-A, Departmentof the Trensury- intemal Revenite Senibe Senet nina a ona {Mey 2017) Explanation of-tems 4a" ‘Name oftaxpayer "Fax Menimoainn Namber fast ais) | veariFered ended Cowltion of A fican Ametivan Pastors USA | | econ, 016 Beene 1217, & the facts and circumstances need forbé considered fo determine if the advocacy is political campaign intecvention: Koy factors in determining whether-a communication results in political. campaign intervention include the following: . : +. Whether the statement identifies one or more candidates for a given public office; + “Whether the statement expresses approval or disapproval for one or more candidetes* positions and/or actions, + Whether the:statement is delivered dose in tithe (o the election; + Whether the staicment makes reference to voting or an election; + Whether the issue addressed in the communication has been raised as an issue. distinguishing candidates for a given office; + Whether the commmnication is part of a0 ongoing sezies of communications by the organization.on the same-issue that are-made inéependent.of the timing of any election; and + Whether the timing of the commanication. and identification of the candidate are related to-a non-clectoral event such a3 a scheduled vote on.specifie legislation by an officeholdor who also happens to be a candidate for public office. A communication. is-partivularly at ris of political campaign intervention whea it refers to candidates ot voting in.a specific upcoming election, Nevertheless, the copmmunicetion inust siill be considsted in-conlext before arsiving at any. conclusions, ee Tax Court Cases: Christian Eehioes Net'l Ministry-v. United States, 470 F.2d.849. Per the facts, revocation of Christian Ecnoes wes upheld by the 1 0th Circuit Coverturning the District Court’s reversal of the Service's revoeation)..This is because the Organization did the:following: “In addition to influcacing legislation, Cluistian Echoes intervened in political campaigns, Genorally[,] it did Catalog Nebo Page 30 wets gov Foam (Rev.6-2017) [Echediite nurmber or exhbt carn BBOAA Onrerot Teams ner Ronen annie (May 2017) Explanation of:Items > Tame of axpaver "fay Werieaion Numa Gast ds) | VeatPorod arden Coiilition f Aftican Américan Pastors USA: z Paced. 2016 Decne 447 & not fornally endorse specific candidates. for office but uset its publications and broadcasts to attack carididates and incumbents who weie considered too liberal. Tt attacked President ‘Kennedy in 1961 and urged its followers to elect coiiservatives like Senator Stom Thurmond and Congressman Bruce Algor and Page Belcher: It mged followers to defeat [217]. Senator Fulbsight and attzcked President Johnson and Senator Hubert Humphrey. The annoal convention endorsed Senator Borry Goldwater. These attempts to:clect or defeat certain political leaders reflected: Christian Echoes! objective t6 change the;composition of the federal govemmenit.” ‘Taxpayer’s Position: ‘The governnient is awaiting the taxpayer's position, Government’s Position: 1, Whether Coalition of Astican American Pastors USA ("Organization") participated or intervened, directly andor indirectly, in aay political. campaign on behalf of or in. opposition of any candidate for public office? Its the government’s position that the Organization participated and/or intervened, directly and/or indirectly, in a political campaign on bchalf of or in opposition of a candidate for publi office. ‘Under Intemal Revenue Code (“IRC”) Section ("Sec.") 501(0}(3) include corporations organized and opcrated exclusively for religious, chatitaible, educational, and/or other purposes. It may not: inure, conduct substantial influence on legis/ation, and/or partivipate in, or intervene in, miy political campaign: Treasury Rogulation (Treas: Rog”) Ser. 1.501(6\(3)-1(0\(3}Gii} provides:that conducting wotivities, directly or indirettly, on behalf ofo candidate for public office, constitute participation or intervention in a political campaign: It also defines an “action” organization and the term “candidate for public office”, among other things. Revenue Ruling ("Rev, Rul”) 2007-41, states: Organizations that are exerapt from ‘opposition to a seni evram (rev 52007 opatnentot he Treasury nal Reverse Schedile number or oxi ran B86-A Dpto ey avr Sa monies (May 2017) Explanation of Items Name of taxpayer | Fav enifestion Number fest at | YearPerea ended Coalition of Afiican American Pastors USA || eco 31, 2018 Deser 22017 under IRE Sec, 501{a) described in IRC Sec. 501(c)(3) may not participate in, or intervene in, any politice} campaign on behal? of (or in opposition te) any candidate for public office. This. Rev, Rul. also provides snultiple key factors (facts arid circumstances) in meking determinetioas with respect to advocacy versus political campaign intervention. Here, the Organization’s actions do not align with its statement(s), Per the “about us” section, the Organization states (in part) that it (paraphrased] “does.not endorse, support, or ‘oppose any candidate for political office”: and, statements ere “purely for discussion and ‘educational purposes and should not be interpreted as a statement of electoral support or opposition”, However, per the records, the Organization has history of regularly advocating on bchaif and/or in opposition of politicians, politicians’ policies, ond political pasties. This is supported within the Organization’s publications for 2016, 2017, and 2018, Per records, the ‘Onganization’s publications ineluded political activities suc as, but not limited to the following: No date— “Our message to move people of faith--and especially lack votets-- away from the failed policies of the Democratic Party is working}. We kaow that our efforts had an impact on this past lection.” [Attachment 2, pege 103). ‘No date— “Now is the time for African American voters to abandon the Democratic Party!” “ I have decided to abandon the Democrats.” [Attachment 2; nages 22 through 24 and page 50). Circa O7/272016— + “CAAP has lagnched the ‘Justice Pledge’ far thoss.citizons who fool they oan 0 longer ignore the Democratic Party's endorsement of policies that are: antithetical to our values, Jn signing the Justice Pledge, we promise that we' will withdrew. out sofomatic support of.a particular party...” [Atachinent 2, page 21: Circa 09/29/2016 — Cotaoy tonto Page 12 ‘wor Form (Rex. 5-2017) rom BEG-A TT Deperinentobthe-Tedeu- nema Reverse Serve [Schedule number or exhiot {tay 2007) Explanation of Items Foe 10) Name of taxpayer [Tax Kdeniifeation Number (ast cigts) | YearPeriod ended Coalition of African Américan Pastors USA- “._.president of The Coalition of African American Pastors (CAAP), will convene at the ‘National Press Club in-D,C, Thursday, September 29, 2616 @ 10:00AM to call for the 2XODUS ‘fiom and denouncement of the Democrat Party? [Attachment 2, page 2t]. Cirea 10/03/2016— “if things [dol bad now, just consider what the situation will be durhig Clinton presidency.” This is supported within Attachment 2, page 27. Cirea 10/24/2016— “This is why welic raising money fo place ads abon! the betrayals of the Deniosralic Patty.” This is supported within Attachment 2, page 55 Circa 11/7/2016 “CAAP is talking directly to black voteis and people of faith, telling thera that the Democratic: Party no longer has room for them.” [Attachment.2, page 66), Circa 11/82016— “Today Is the Day! Make-Your Vote Count!”.“Please alo remember to tell. friends and farnily to get out.and vote. Remind them also.of what ié at stace this election, And sond them CAAP'snew videos to help demonstrate why we can no longer allow ourselves. to-be Lied to-and used by thie Democratic Petty.” "We will keep spreading this message seross the country after the polls.close and for yéars'to-come." [Attachment 2, pages 7I-through. 73], Circa 14/9/2016 z : “We did isl Thank you forhelping CAAP make a difference.” “The Coalition of Aiticain American Pestors launched a sustained campsign to poreunde black votets to stop lotting themselves be used by the failed policies:and empty prontises of Democratic politicians. It is clear that this is:a message that resonated with:many voters and helped make Mt, Trump out next president.” [Attachment 2, pages 76 through 78 and page 81], [End quotes} ae | Page 12 sii. Fon (rei: 5:017) A Degen ofthe Treastey- nema Revenue Senos Schedale nombar o exh Fam BBG-A | " Toot (May 2017) Explanation of Items Name of taxpayer “Tax ienification Numba Gast # ats | YoariPeiod ended Coalition of African American Pastors USA. _ Deemer 216 eee 32007, 2As explained within the. fects section and shown within'the:publications, the Organization created and distributed multiple written and/or electronic newsletters, brochures, pamphlets, and: articles (“publications”) to members and/or the public, Mony of the Organization’s publications contained direot and/or indirect political campaigning, One clear example of political campaigning was found within the mticle titted “Abandon the Democratic Party”. The Organization published this article within The Washington Times, which, wai distributed to the public. Within the article, the Organization {paaphrased!] argued (in part) against a 2016 Residential candidate, a political party's policies, and encouraged readers to abandon a political: party. Given thé article's context, itis clear the Organization is.dicecting the public to act in favor of and/or against a Presidential candidate and political party’s policies, among other things. “Thus, it is the government's position thet ach divection is indicative of the Organization having participated within and/or intervened, directly and/or indirectly, in a political campaign on bebalf of or in oppasition ofa candidete for public:office. Note: The article titled “Abandon the Democratic Party" is listed within Attachnient 2, page 50. Per the records, in genecel, the Organization regularly identifies one or more candidates for publio office. Then, the Organization expresses approval and/or disapproval for the said candidates, This is indicative of the Organization having participated within and/or intervened, Girectly andor indirectly, in a political campaign on bebalf of or in opposition of a candidate for fublie office. The govemment also noted that much of the material covered withia Organization’ s:publications was focused on:a Presidentiel election; the: Organization regularly referred to voting and/or aneleotion; and, communication regularly distinguished cendidates for a given office. This content is also indicative of the Organizalion having patticipated within andlor intorvened, directly and/or indizeotly, in a political cempaign on behalf of or in opposition of'a candidate for public office. . «Therefore, given the above, the Organization participated within andior intervened, directly. and/or indirectly, inca political campaign on behalf of or in opposition of a.candidate for ublic office, Catalos Nuno Page 14 ‘yowwwirs.g0¥ Form (Rev, 52017) [Schedule number or eahibt q (Dapariment ofthe Teeasury~inlemat Revenue Serve P Fom 886-A, . F990 1G) (May 2017) ; Explanation of Items . Name of taxpayer . ee Tax tdentification Number fast digits) | Year'Period ended Coalition of African American Pastors USA. 2. -Whettier the. Organization’s intemal-Revenne: Code (“IRC”) Section (*See:”) 501(C)} exempt status should be revoXed on the basis that it coiducted pofitical- activities prohibited by IRCSeo; 501 (o)(3)? Jk is the government's position thet tho Organization's exempt sintus:under IRC Sec. 301(6)(3) should be revoked because it conducted numerous political carapeigns which are prohibited by IRC Sec. 501(0}{3). ‘Under Intemal Revenue Code (“IRC”) Section (°Sec.”) 501(0XG3) inolude corporations organized and opzrated exclusively for religious, charitable, educational, and/or other puposes. Temay not: inure, conduct substential influence on legislation, and/oz participate in, or intervene in, any political compaign. In addition, as detormined by tho 10" Circuit, Christian Echoes waa revoked [paraphraged] because the Organization intervened in potitieal campaigns [Christian Eehoes Natl Ministry v. United States, 470 F.2d 849]. Here, the Organization was determined to have participated in, or intervened in, political campaigning (which is probibited within IRC Sec. 501 (c)(2)}. Alsc, based on the facts and circumstances, the Organization’ activities were similar to Christian Echocs’ political activities. Per records, the Organization attacked a Prosidential candidate and urged its followers to elect conservatives. It urged followers fo defeat a Presidential candidate and a political party. These attempts to elect or defeat certain political leaders reflected the Organization’s objective fo change the composition af the federal government. ‘Therefore, the Organization’s exempt status under IRC Sec, 501(¢)(3) should be revoked. Conclusion: ‘Based upon the facts and circumstances as presented curing this audit and as stated above, as well as, the Law and Rulings cited above, the Coalition of African American Pastors ‘USA (“Organization”) does not qualify for exemption under IRC Sec, 501(c}(3). Accordingly, Catsog tunboM Pago 15 ssis.govFom (ov. 52047) ‘Schedule nutber or ex. Form 886-A ‘Depantment of he Treseany - Internal Reverie Senco. . F990_1 (1 (May 204%) Explanation of .jtems 410 Narre af axpayer “Tax tenwficclion Number (et 4 agi) | VoariPoriod anced Coalition of African Ametican Pastors USA Zz. Dacor 8, 2016 Deemer 307, ‘we propose to revoke Organization’s exempt status under. IRC:Seo. 501 (c)(3), effectively, beginning January:1, 2016, Asa result, the Organization is required fo file Form 1120, U.S. Corporation Income Tax Return, for any year thereafter the tax year ending December 31, 2016, if Organization remains subject to Federal Income Tax, Note: Other filing requirements may also apply. cape Nuno Page 16 wets. 907 Ferm (Rav, §-2017)