Freedom Path's Continued Journey: Challenging the IRS' Dubious "Facts and Circumstances" Political Test

When is a tax-exempt organization too political? Freedom Path is a nonprofit that has repeatedly sought to challenge the IRS’ multi-factor “facts and circumstances” test for deciding that question, particularly with respect to politically oriented educational issue advocacy. Throughout varying court challenges, Freedom Path has asserted that it is properly organized as a Section 501(c)(4) social welfare organization and entitled to engage in constitutional free speech activities that do not cross over the political line for such tax-exempt status. The IRS, on the other hand, has rejected such argument per its Revenue Ruling 2004-6, and has won so far. Who is right? Does IRS Revenue Ruling 2004-6 pass constitutional muster?

SCOTUS Broadens Employers' "Ministerial Exception" Protections

The Supreme Court of the United States has significantly broadened the scope of legal protections for religious employers against employment-related claims. The Court’s July 8, 2020 decision in Our Lady of Guadalupe Sch. Morrissey-Berru St. James Sch. v. Biel,[1] clarifies and broadens the so-called “ministerial exception,” which forbids or excepts courts from intervening in employment-related disputes involving workers engaged in religious activities. This important legal protection promotes First Amendment religious freedom rights by avoiding secular courts’ interference with employment decisions that may involve religious aspects.