The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, August 15, 1996             TAG: 9608150404
SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WASHINGTON                        LENGTH:   58 lines

DISTRIBUTING VOTER GUIDES MAY THREATEN CHURCHES, GROUP SAYS CHRISTIAN COALITION PAMPHLETS MAY RISK THEIR TAX-EXEMPT STATUS, SAYS MEMO.

Just weeks after the government sued the Christian Coalition over its voter guides, a liberal group is warning churches they could lose their tax-exempt status if they distribute the pamphlets.

``Unless the Christian Coalition dramatically changes its established pattern,'' the People for the American Way memo reads, ``it would be both legally improper and morally wrong for churches and other religious institutions to distribute its voters guides this fall.''

But in San Diego on Wednesday, director Ralph Reed said at a rally that the Christian Coalition effort to distribute 50 million voter guides this fall would not be stopped by efforts to ``harass'' churches.

``Christians are Americans, too, and they have a right to get involved in the political process,'' Reed told a crowd of a few thousand who gathered to celebrate their influence on the Republican platform.

The Federal Election Commission sued the Christian Coalition last month over its guides and other activities, arguing they improperly aid Republican candidates. The case is not expected to be decided before the November election.

The FEC suit does not target churches. But the Internal Revenue Service gives churches and other charities tax-exempt status based on a number of conditions, including a promise not to engage in political activity. One New York church lost its exemption last year after running an advertisement critical of the Clinton administration.

People for the American Way said it simply wants to remind churches that they can lose their tax exemption if they engage in partisan activity.

``We're not telling them what to do,'' said Mike Hudson, the organization's vice president. ``We want to make sure they know they're involving themselves in what the FEC thinks is a partisan activity.''

He added that People for the American Way does not want churches to stop distributing political information.

``We just want to make sure everyone is informed of this and make sure they know there is jeopardy in aligning themselves with the Christian Coalition,'' Hudson said.

It is not clear if the groups that received the memo passed it along to their members. The memo was sent to the National Association of Evangelicals, the Southern Baptist Convention, the Episcopal Church and others.

Hudson said his organization has no plans to sue churches if they distribute the guides.

But at least one church leader takes the memo as a veiled threat.

The Cathedral of Praise church outside Toledo, Ohio, has its own legal counsel and doesn't need People for the American Way to give it advice, said the Rev. Tony Scott, who had heard about the memo but had not received a copy.

Scott sees nothing wrong with his church distributing the voter guides, which compare candidates on a series of issues.

``I think we have a right in this country as Christians to quote the Bible and say what the word of God says about an issue,'' he said. ``We have that right as Christians.''

KEYWORDS: CHRISTIAN COALITION ELECTION by CNB