NonProfit Navigator Newsletter 2007 Issue 2

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2007 Issue 2

FEC Issues "Purpose of Disbursement" Policy Statement

FEC Announces Federal Campaign Contribution Limit Increases for 2007-2008

Ring, Ring: Judge's Ruling on Anti-Gay Robocalls Sounds a Warning to All Groups Making Automated Telephone Calls

New Website for Small Exempt Organizations

FEC Issues "Purpose of Disbursement" Policy Statement

The Federal Election Commission recently issued additional guidance on what level of detail will be considered sufficient when describing disbursements in campaign finance reports that federal political committees and others must file. In providing such guidance, the Commission's goal was to promote greater consistency among the analysts reviewing reports, particularly among reviewers within different departments of the Commission.

Under the Commission's regulations, a "purpose of disbursement" entry must provide sufficient detail to make the purpose of the disbursement clear when it is considered in conjunction with the recipient of the disbursement. The policy statement supplements the regulations with a nonexhaustive list of entries that will and will not be considered to provide sufficient detail. Future revisions to this list will be posted on the FEC website here.

By Robert Johnson

FEC Announces Federal Campaign Contribution Limit Increases for 2007-2008

Contribution limits to federal candidates have been increased for inflation for the 2007-2008 election cycle. Individuals and political action committees that do not qualify as multi-candidate PACs may now contribute up to $2,300 per election to federal candidates, up from $2,100 in 2005 and 2006. The limit on contributions to another political action committee remains at $5,000 per year.

Please see the January 23, 2007 FEC press release for a complete list of the 2007-2008 contribution limits.

By Robert Johnson

Ring, Ring: Judge's Ruling on Anti-Gay Robocalls Sounds a Warning to All Groups Making Automated Telephone Calls

Ruling and Fines for Illegal Robocalls Judge Robin J. Cauthron of the United States District Court for the Western District of Oklahoma recently ruled that a political consultant's automated telephone calls (commonly known as robocalls), which warned individuals of a county commissioner's so-called "homosexual agenda," violated the Telephone Consumer Protection Act ("TCPA"). The calls, commissioned by Tim Pope of the Oklahoma Republican Assembly, were made to 20,000 individuals in Oklahoma County in January of 2006. The Oklahoma State Attorney General's office investigated the calls after receiving complaints and brought a civil action against Mr. Pope. In a summary judgment, the judge ruled that the calls violated TCPA because they did not identify the sponsor and did not contain contact information. The fines levied against Mr. Pope have not yet been settled, though TCPA allows for a $500 penalty per violation.

Legal Framework Under the TCPA, it is unlawful to initiate an automated telephone call without the prior express consent of the recipient, unless the call is conducted for emergency purposes or is exempt under a rule or order of the Federal Communications Commission (FCC). The FCC exempts calls conducted for non-commercial purposes, such as grassroots lobbying or political messages. Despite this exemption, all robocalls must meet certain requirements:

At the beginning of the call, the message must clearly identify the business, individual, or other entity initiating the call.
During or at the end of the call, the message must provide a telephone number or address of the business, individual, or other entity providing the automated message.
Finally, the automated system must release the called party's line within five seconds of a hang-up, in order for the called party to receive or make other calls.

Monitor Your Robocall Vendor The complaint and disposition against Mr. Pope show that stricter enforcement of TCPA's requirements is likely. Significantly, TCPA can be used to punish groups for political messages that recipients do not like, if groups are not careful to comply with the regulations.

Proposal to Prohibit Political Robocalls Finally, organizations should also note that legislation is pending in the House of Representatives that would prohibit groups from making political robocalls to individuals on the Do-Not-Call registry. The act is called the Robo Calls Off Phones (Robo COP) Act. Nonprofit Navigator will keep readers apprised of developments.

By Sara Tosdal

New Website for Small Exempt Organizations

The IRS has produced a website, primarily for small to mid-size exempt organizations, guiding users through the basics of setting up and running an exempt organization. The interactive website covers such topics as maintaining exempt status, employment issues, unrelated business income tax, filing the Form 990, and required disclosures. The website also features links to IRS forms and publications that exempt organizations may find useful.

By Sara Tosdal

This publication is designed to provide accurate and authoritative information about the subject matter covered. It is not distributed with the intent to render legal, accounting, or other professional advice. The services of a competent professional should be sought if legal advice or other expert assistance is required.

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