WITCH HUNT FOR CHURCHES? NONPROFIT STATUS JEOPARDIZED BY DONATIONS TO POLITICAL CAMPAIGNS.

Byline: BETH BARRETT Staff Writer

Dozens of houses of worship in Los Angeles and throughout California have jeopardized their nonprofit status by giving money from their collection plates to political candidates, the Daily News has learned.

In Los Angeles alone, 39 churches, synagogues and Buddhist temples were identified by political candidates as contributing more than $15,000 to their election campaigns since 1998, according to city Ethics Commission records.

Under the Internal Revenue Service tax code, contributions to political candidates by nonprofits -- including houses of worship -- violate a prohibition against political campaign activity.

The disclosure is the latest in a growing national debate over churches' role in politics. The spotlight has focused locally on All Saints Episcopal Church in Pasadena, which is in jeopardy of losing its tax-exempt status following a complaint last year that it ventured too far into the political arena when a former rector criticized the Bush administration in a sermon during the 2004 elections.

Experts say the issues raise questions over whether the IRS is being even-handed. While the federal tax agency has taken on All Saints, some say it may be overlooking others' political donations as well as whether churches are using federal funds solely for intended social programs.

``Just as the government isn't going to look too closely at the religious uses churches are making of tax dollars they receive, so it might be equally appropriate if they don't look too closely at the political activity of the churches that can receive tax-deductible donations,'' said Ronald Garet, professor of law and religion at the University of Southern California.

The Rev. Ed Bacon of All Saints notes his church has never violated federal law by contributing to a political candidate. He also said it has never endorsed nor opposed a particular political candidate, which also would violate IRS laws.

``We've always had the question, why and why now? Our church has been very active in looking at the political implications of our faith,'' Bacon said, noting he's spoken against the wars in Afghanistan and Iraq without repercussion.

``We're sure it's stimulated by the new election cycle. We think it's an effort to send a chilling message to communities of faith not to be involved in politics. But we know where the line is drawn.''

IRS spokesman Jesse Weller declined to comment, referring to a statement issued by the agency last week that said the IRS investigates charities and churches when allegations are made.

That's the case at All Saints, which the IRS began investigating in June 2005 after receiving an anonymous complaint. In the escalating battle, the church last week refused an IRS summons to divulge records and sermons from 2004.

``Charities and churches may speak to the issues of the day and engage in nonbiased voter education activities. We recognize the constitutional rights of freedom of speech and religion,'' the IRS statement said. ``But ... charities and churches do not have a right to ask Americans to subsidize their political actions with charitable contributions.''

The IRS said it examined 47 churches nationwide for political activity compliance in 2004 and wrote warning letters or assessed excise taxes to 37. No revocations of tax-exempt status were proposed.

For their part, church officials said they didn't know they had overstepped the line in making political contributions until the candidate returned the money or they were contacted by the Daily News.

Some said they thought they were making donations in support of local leaders' community efforts rather than political campaigns. Others said the candidates themselves reported the donations incorrectly.

In the Daily News' review, beneficiaries of the offering plates included Mayor Antonio Villaraigosa, former Mayor James Hahn, City Councilman and former mayoral candidate Bernard Parks, and state Assemblyman Mark Ridley-Thomas.

While it is not illegal for politicians to take the money, some have returned it and informed churches of the tax risk they face.

Ridley-Thomas, who received $2,600 from 10 religious organizations from 1999 to 2001, said his campaign assumed that the contributions came from accounts that did not put the churches in jeopardy.

``My expectation and assumption is that they are governing themselves in a defensible way, and so we don't typically interrogate contributors,'' he said.

Ridley-Thomas also said he believes the IRS is violating All Saints' constitutional right to free speech.

``Is this the moment of witch hunt against churches willing to speak out against this administration?'' he said.

At Saint Thomas Missionary Baptist Church in Los Angeles, financial secretary Dorthy Madison said the church considered it a ``love offering'' when it contributed $1,000 to Parks' run for mayor and didn't know it was violating tax law.

``We have contributed because he attends church. He's not an official member, but he attends quite frequently,'' Madison said, adding that the former LAPD chief never solicited contributions. ``We know it takes money to run a campaign.''

Three years earlier, Parks' City Council campaign returned a $250 contribution from Brookins Community A.M.E. Church, citing the risk to the church's tax-exempt status.

The Rev. Frederick O. Murph said he hadn't known a political contribution could jeopardize the church's tax-exempt status until Parks' campaign returned the check.

``At the time we thought that Mr. Parks would make a good councilman. The separation of church and state is such a gray area,'' Murph said.

``Our job is to reach beyond the walls to the citizens, to be the moral voice of the community and for the nation. From my perspective it's a very gray area.''

Parks said the $1,000 contribution from Saint Thomas Missionary Baptist Church likely was an oversight by a new campaign treasurer in the mayor's race.

He said that in his 2002 council race, his treasurer had advised returning contributions from religious organizations unless it was from a separate foundation or an individual pastor.

At Saint Mark Coptic Orthodox Church, the Rev. Michael Gabriel said the church might have been negligent when it wrote a $500 check to Councilman Jack Weiss in February 2005 while Weiss was running for Los Angeles City Council.

Church members each paid $50 for a fundraising dinner at a hotel, with the church bundling the money and cutting the final check.

``We didn't really support him,'' Gabriel said. ``It was more appreciation for the office existing in the district.''

He said the church doesn't dabble in politics.

City Council candidate Carl Washington reported getting $100 from First Bethany Missionary Baptist Church in Los Angeles in 2001 during his election campaign.

But pastor Gregory McClain said the money was likely a stipend for Washington, also a minister, to take part in a church meeting.

``He could have taken the stipend and made it appear as though it was a political contribution,'' McClain said.

McClain said the church has never made a political contribution because it knows it could affect its tax-exempt status.

All Saints' Bacon said he just wants everyone to have an even playing field.

``I'd like (the IRS) to reinstate, in practice, the guidelines all of us have adhered to since 1954,'' he said. ``I'd like that to be reinforced to drop the case against us ... and to hold those accountable who have been in breach of the regulations.''

beth.barrett(at)dailynews.com

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The following are among the houses of worship that contributed to political campaigns since 1998, according to city Ethics Commission records.

Abundant Life Christian Church, Los Angeles: $100 to Mark Ridley-Thomas in April 1999 for his City Council re-election campaign. Pastor John Tunstall said he couldn't recall the details, but he said he believed the donation may have come from a church auxiliary fund.

Bethel AME Church, Los Angeles: $300 in February 1999 to the Friends of Mark Ridley-Thomas campaign. Church officials said the church doesn't make political contributions and said it may have been an honorarium or fee for a speech.

Brookins Community A.M.E. Church, Los Angeles: $250 to Bernard Parks in June 2002 for his City Council race. The contribution was returned by Parks' campaign and the church was warned such donations jeopardized its tax-exempt status.

First Bethany Missionary Church, Los Angeles: $100 in May 2001 to Carl Washington's City Council campaign. Pastor Gregory McClain said he believes the candidate reported it incorrectly and that it was actually a stipend for Washington to speak in his role as a minister during a church meeting.

Paradise Baptist Church, Oakland: $1,000 to Antonio Villaraigosa in May 2005 for the mayor's election campaign. A church official confirmed the funds were disbursed, but the Mayor's Office said the contribution was returned.

St. Mark Coptic Orthodox Church, Los Angeles: $500 in February 2005 to Jack Weiss' City Council campaign. The Rev. Michael Gabriel said the church may have been negligent in writing the check, after bundling members' individual contributions from a dinner fundraiser.

St. Thomas Missionary Baptist Church, Los Angeles: $1,000 in 2005 to Bernard Parks' mayoral campaign. A church official said she didn't know that the political contribution was a violation, and Parks said accepting it was an oversight.

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