NAACP IRS probe concerns groups

Civil libertarians and nonprofit leaders are concerned an IRS investigation into the National Association for the Advancement of Colored People could stifle free speech. At stake: the NAACP's tax-exempt status and its ability to raise money from tax-deductible contributions. "It's very important that the NAACP win this case," said Witold "Vic" Walczak, legal director for the American Civil Liberties Union in Pennsylvania. "Just that threat hanging over a group will cause them to self-censor their message." The Internal Revenue Service probe stems from a speech NAACP Chairman Julian Bond made at the civil rights group's convention in July. In his speech, Bond "condemned the administration policies of George W. Bush on education, the economy and the war in Iraq," according to an IRS letter sent two months ago to the NAACP and cited by The Chronicle of Philanthropy newspaper. Generally, nonprofit organizations are allowed to take stands on policy issues, but are prohibited by federal law from supporting or opposing candidates for public office. President Bush was running for re-election when Bond made his comments. The NAACP has denied violating any laws, but national President Kweisi Mfume has resigned. "We feel confident that we will win in this case," said John C. White, a spokesman at the NAACP's national headquarters in Baltimore. If the IRS rules against the NAACP, the agency could impose excise taxes or yank the group's nonprofit status. In that case, donors could not deduct their contributions from their income tax. [more]