One of the major issues surrounding Rev. Chan Chandler’s remarks and the potential fallout of preaching politics from the pulpit has to do with churches’ tax-exempt status.

According to the Internal Revenue Service guidelines, entities with a non-profit (501 c3) tax status must refrain from political activity or stand the chance of losing their nonprofit status. That constraint is well understood among those who run most U.S. churches, say religious officials.

“There is an understanding in the church in America that because you are granted a tax-exempt status by the government, then you therefore don’t display a partisan perspective,” said George Freeman, general secretary of the World Methodist Council at Lake Junaluska. “That is something I assume would be understood by all persons of religious authority. If you take a partisan standpoint you are jeopardizing that non-profit status.”

The IRS guidelines make that point all-too-clear. The IRS guidelines state: “religious organizations, must abide by certain rules ... they must not devote a substantial part of their activities to attempting to influence legislation.... they must not participate in, or intervene in, any political campaign on behalf of (or in opposition to) any candidate for public office ...”

If Chandler made statements supporting President George Bush from the pulpit in October, before the general election — and he did not make it clear he was speaking for himself — it could cause financial problems for the church.

According to the Biblical Recorder — a weekly newspaper affiliated with the State Baptist Convention — Chandler’s statements would be a “pretty clear” violation of IRS rules against political endorsements by churches, said Brent Walker, executive director of the Baptist Joint Committee for Religious Liberty (BJC). That could lead the IRS to revoke East Waynesville Baptist Church’s tax-exempt status.

This part of the tax code has come under fire recently from some lawmakers. Walter Jones (R-N.C.) has introduced a version of the Houses of Worship Free Speech Restoration Act in every session of Congress since 2000. In part, the Act says: “Amends the Internal Revenue Code to protect churches from losing their tax-exempt status because of the content, preparation, or presentation of any homily, sermon, teaching, dialectic, or other presentation made during religious services or gatherings. Permits church leaders to express personal views on political matters or elections during regular religious services without violating campaign finance laws, as long as such views are not disseminated beyond the members and guests assembled at such services.”

If passed, the bill would make it legal to do what Chandler — and other ministers who support both parties — have done. Rep. Charles Taylor, R-Brevard, supports the measure. The bill continues to receive strong support from many conservative Christian groups but has yet to pass.

Many groups that support the separation of church and state have strongly opposed the bill, according the article on the Biblical Recorder story. That includes the Baptist Joint Committee for Religious Liberty. Baptist State Convention (BSC) Executive Director-Treasurer Jim Royston issued a statement to the Recorder saying that Chandler’s requirement that church members agree with his personal political viewpoint would be “highly irregular” if it is true.

East Waynesville is a cooperating member of the BSC by contributing financially to the BSC’s state, national and international missions efforts. As with any member of the BSC, churches are autonomous and decisions they make are neither directed by, nor directive to the Baptist State Convention.

After the controversy gained national attention, Chandler issued a statement that contradicts what church members claim he was preaching earlier. In part the statement reads: “This church fellowships openly with all who embrace the authority and application of the Bible regardless of political affiliation, including current members who align themselves with both major political parties, as well as those who affiliate with no political party.”

— Scott McLeod