[EL] ELB News and Commentary 12/20/11

[BZall at aol.com]

501(c)(3)s cannot have PACs, and generally cannot have relationships with  
527s (there is a tiny subset of limited activities that falls outside this 
ban).  Absolute ban; no de minimis exceptions. See, e.g. Rev Rul 2006-17. 
_http://www.irs.gov/newsroom/article/0,,id=154712,00.html_ 
(http://www.irs.gov/newsroom/article/0,,id=154712,00.html)  
 
The usual method to evade this restriction is for the individuals involved  
to set up a non-connected PAC. But that is tricky, and generally does not  
include the control group for the c3 or even substantial influence persons. 
 
As to Paul Lehto's questions about govt speech and subordinates, that's  
kind of been settled since Rosenberger v. Rector [etc.] of Univ. Virginia and 
Rust v. Sullivan. Without looking up the cites, it's something  like: 
"Government has the right to control speech when it is the speaker" and  
"Government has the right to control speech it is paying for." And the  substantive 
logic is that parent and subordinate are not, in fact,  separate entities 
with separate speech rights. 
 
 
Barnaby Zall
Of Counsel
Weinberg, Jacobs & Tolani,  LLP
11300 Rockville Pike, Suite 1200
Rockville, MD 20852
301-231-6943  (direct dial)
_www.wjlaw.com_ (http://www.wj/) 
bzall at aol.com



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