I continue to cover this story in hopes that it will gain momentum and be more broadly covered. In my last blog post on this subject I discussed the the recent court ruling and how it could change the political landscape by allowing nonprofits to become fully engaged in the political process. It appears that we are inching closer to that reality.

Last month the Federal Election Commission (FEC) deadlocked over whether to allow a political consulting group to coordinate efforts of separate independent expenditure campaigns. The FEC voted to allow Black Rock Group to act as a vendor for wealthy individuals who want to run political advertisements, but it declined to take a position on whether the group could coordinate expenditures.

The problem for the FEC is a the lawsuit brought by EMILY’s List, the pro-abortion-rights Democratic organization, that threatens to strike down FEC regulations of political spending by outside organizations.

A three-judge panel of the U.S. Court of Federal Appeals, citing the First Amendment, struck down FEC rules limiting how groups like EMILY’s List can spend money.

The FEC may appeal the decision to either an en banc panel of the D.C. Circuit Court or directly to the Supreme Court, but commissioners have yet to take up that question publicly.

The decision has left the FEC stymied on some questions of campaign finance law. At issue in the Black Rock decision was whether Black Rock could be contracted to poll, create advertising and conduct other political activities for single-member limited liability companies, which would be managed and funded by a single wealthy individual.

By not making a decision, the FEC sent a mixed message to proponents of campaign finance reform and those who say campaign spending equals free speech.

The deadlock means Black Rock is unlikely to be fined if it does facilitate communications. Three commissioners voted to allow facilitation, while two did not (the sixth commissioner recused herself from the case). Any enforcement actions by the FEC require four votes, and with three commissioners staking out the position that facilitation would be legal under campaign finance law, hopes of taking any action are remote.

The EMILY’s List case that delayed part of the FEC’s decision has the potential to go much further in allowing new money to be spent on political campaigns. By siding with the plaintiffs the court has indicated that the FEC does have some jurisdictional boundaries under the First Amendment, and it needs to respect those boundaries.

How this ultimately plays out will make a big difference to nonprofits’ and their ability to engage in partisan politics.

Related posts:

1. When Nonprofits Become Political
2. When Nonprofits Become Political (Part 3)
3. Prism Comics Queer Press Grant
4. Big Help for Small Nonprofits in The Healthcare Reform Act
5. Do Something and VH1 Save the Music Announce Awards Program for School Music Projects

Posted in Stephen's Blog