Bill targeting Boy Scouts' tax exempt status draws criticism

Darrell Byers/Reuters file

Scouts attend a prayer vigil at the Boy Scouts of America headquarters in Irving, Texas, on Feb. 6, 2013, while a decision to change the membership policy banning gays was being deliberated. The BSA decided to postpone that decision until May.

A proposed law in California to remove a state tax exemption for youth groups like the Boy Scouts that don’t allow gay members would set a dangerous precedent, according to an association of nonprofits.

The legislation, introduced by Democratic State Sen. Ricardo Lara on Tuesday, would deny exemptions from state corporate taxes and taxes on items such groups sell. It would also require them to pay corporate taxes on donations and other forms of income.

Lara and LGBT advocacy group, Equality California, said the bill was aimed at groups like the Boy Scouts of America, which has faced increasing protests over its longstanding policy banning gay Scouts and leaders. An expert said she believed it was the first time such a law had been proposed, though it follows the loss of corporate sponsorship dollars to the BSA due to the policy.

The California Association of Nonprofits, which has 1,500 member organizations, said it opposed the legislation in its current form, even though the group opposes discrimination based upon sexual orientation or gender identity as outlined in the bill, SB 323.

“ … we are against using the tax exemption as a way to compel change in a nonprofit's policies,” Kris Lev-Twombly, the group’s director of public policy, wrote late Wednesday in an email. “Stripping nonprofits of tax exemption on ideological grounds is a slippery slope. Nonprofits are the embodiments of free speech in our society. When we disagree with a nonprofit's policies, we should vote by moving our donation dollars and our volunteer feet elsewhere.”

The association said it is difficult to estimate how many of California's 50,000 nonprofits could be impacted because there is no reliable data on how many discriminate based upon sexual orientation. 

“To lose state tax exemption in California could be significant for a nonprofit organization,” he said. “The bill is narrow in the sense that the provision applies specifically to youth organizations, but the question is how many organizations in California might be found to discriminate as outlined in the bill.”

The law would require two-thirds approval of both houses of the state legislature to win approval. Lara said the state already bans discrimination based on sexual orientation in public accommodations and government programs.

“Our state values the important role that youth groups play in the empowerment of our next generation; this is demonstrated by rewarding organizations with tax exemptions supported financially by all Californians,” he said in a statement. “SB 323 seeks to end the unfortunate discriminatory and outdated practices by certain youth groups by revoking their tax exemption privilege should they not comply with our non-discrimination laws.”

The Boy Scouts of America declined to comment on the legislation, which comes about two weeks after it postponed a decision on whether to end the policy at the national level and leave local sponsoring organizations free to decide for themselves whether to admit gay Scouts.

The BSA, a private youth organization, said it had received an outpouring of feedback on the membership guidelines after the potential change was announced in late January, and that it would take action on the issue at its national meeting in May.

Boy Scouts: We need more time for decision on gay membership


More than two-thirds of Scouting groups are affiliated with religious bodies. Among the top religious sponsors, The Church of Jesus Christ of Latter-day Saints have called for more time to discuss the issue, while the Southern Baptists on Tuesday passed a resolution rejecting the proposed change, according to the Baptist Press.

Pat Read, an independent consultant for nonprofits and foundations nationwide, said she believed such legislation was a first. However, she said there was a precedent, noting a 1983 Supreme Court case in which the IRS said it would no longer provide tax exempt status to private schools that practiced racial discrimination – a fight the federal tax agency won.

Read said the bill would have a financial impact and could potentially deter people from making donations.

“When the federal government or a state government stands up and says that this nonprofit is not a good nonprofit because of some policy it has adopted, it affects the ability of people to support that group, it affects how much money it has available to support its programs versus paying taxes, and it affects public opinion about the value of its work,” she said by phone from Boulder, Colo. “And all three things are important and all three things are at stake in this legislation.”

She said this legislation could wind up in court if it is approved, noting private organizations would likely object and say, "you have no right to try to tell us what to do.”

“Some of them will be saying, you know, 'well tough we don’t need the tax exemption,'” she added. “But there will be a price to be paid for that.”

If you are a current or former member of the Boy Scouts and would like to share your thoughts on how your troop, pack or council is handling the BSA's decision on the membership policy, you can email the reporter at miranda.leitsinger@msnbc.com. We may use some comments for a follow-up story, so please specify if your remarks can be used and provide your name, hometown, age, Boy Scout affiliation and a phone number.

Related:

'Nasty internal fight' or 'strategic pause': Boy Scouts supporters weigh delay on gays

After years of heartache, gay Scouts and supporters react warily over proposal to lift ban

'Gravely distressed': Religion looms large over Boy Scouts decision on gays 

Gay teen denied Eagle Scout: 'Change is happening' over Boy Scouts anti-gay policy

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Tagline California, say no more....

  • 3 votes
Reply#101 - Thu Feb 21, 2013 4:39 PM EST

What would be taxed? The BSA is 100% non profit meaning there would be no taxes levied anyway. A tax exemption is NOT a form of payment by the government to them. How can keeping your own money be a government giveaway?

If we carry the argument out to its logical conclusion that government should not allow exemptions to groups that discriminate, then we must agree that organizations are just a group of individuals. That being the case, then we could argue that the IRS could disallow the personal exemptions of any individual that discriminated against anyone. ie... You dont like homosexuals, then you dont get a personal tax deduction.

The boys scouts are supported by 10's of millions of supporters in every country on earth nearly all are unpaid volunteers. Shall the government tax their volunteer work as a payment made to the BSA or tax the money that those same volunteers spend at the local level to buy equipment or pay for the public works they do in every community? Would those same volunteers be denied writing off their expenses as charity work? B

Be careful what you ask for. Remeber the first amendment, NO LAW shall be written to deny the people to associate with whom they wish.

  • 2 votes
Reply#102 - Thu Feb 21, 2013 4:39 PM EST

I can't believe all of you trying to sexualize the Boy Scouts. They are ten year old boys and 99% of them have no idea what their sexual orientation is or will be. The world is going through a lot of very difficult times and changes. Stop trying push your agenda on them. The individual Boy Scout and the organization will figure this out in their own way, in their own time, without a bunch of nitwit adults trying to force sexual indentification on the organization and the scouts. It took many years of gropping for the gay community to be recognized. Leave them alone and they will work it out. In the meantime let them do what Boy Scouts do, explore the world around them.

  • 2 votes
Reply#103 - Thu Feb 21, 2013 4:39 PM EST

Especially until, up until the 1970s, homosexuality was actually seen as a mental disease.

  • 1 vote
#103.1 - Thu Feb 21, 2013 4:40 PM EST

BD1854 - I can't believe all of you trying to sexualize the Boy Scouts.

Ummmm........it's not gay scouts who are trying to "sexualize the Boy Scouts", it's the bigoted Mormons and bigoted Southern Baptists in the BSA who think the sexual orientation of scouts and scout leaders is the concern of the BSA. It wouldn't be an issue at all except that some bigoted morons in the BSA decided in 1978 to make it an issue.

They are ten year old boys and 99% of them have no idea what their sexual orientation is or will be.

That's kind of the point - many kids get involved in scouting long before they realize what their sexual orientation is........but when they do realize it, the BSA kicks them out for no apparent reason other than homophobia.

The individual Boy Scout and the organization will figure this out in their own way, in their own time

Just like it only took them 64 years to realize that having whites-only troops was a very bad idea.

  • 3 votes
#103.2 - Thu Feb 21, 2013 4:50 PM EST

entry age into the scouts is eleven.

    #103.3 - Thu Feb 21, 2013 5:17 PM EST
    Reply

    More coercion by the government. What else is new?

    • 1 vote
    Reply#104 - Thu Feb 21, 2013 4:39 PM EST

    I assume that all Christian churches are next? Good, go after the bastards preaching moral and ethical back bone!

      Reply#105 - Thu Feb 21, 2013 4:40 PM EST

      If you are going to take away the tax exempt status of this group (Boy Scouts) because you do not agree with their mantra than you need take away the tax exempt status of EVERY non profit; Or you have violated the Constitution of The United States of America.

      I could live with that...........Buy buy PBS, NPR, "planned" Parenthood. etc etc....

        Reply#106 - Thu Feb 21, 2013 4:41 PM EST

        This is long overdue and should be done at the national level as well.

        • 3 votes
        Reply#107 - Thu Feb 21, 2013 4:42 PM EST

        Back in 1983, the Supreme Court allowed the IRS to take a federal charitable tax exemption away from Bob Jones University and no one said a word.

        Martin Niemöller (1892-1984) Protestant pastor:

        First they came for the Socialists, and I did not speak out--
        Because I was not a Socialist.

        Then they came for the Trade Unionists, and I did not speak out--
        Because I was not a Trade Unionist.

        Then they came for the Jews, and I did not speak out--
        Because I was not a Jew.

        Then they came for me--and there was no one left to speak for me.

        • 4 votes
        Reply#108 - Thu Feb 21, 2013 4:44 PM EST

        Why should federal funds be used to subsidize racism in education, even at a private school?

        Bob Jones University is still free to be as racist as they like but they just can't use public money to do so.

          #108.1 - Thu Feb 21, 2013 5:18 PM EST
          Reply

          ...what's next?.... making the Boy Scouts accept the mentally ill too.... these gays just want to convince you that 3% of the population is the same as the other 97% and you're all falling for the big lie........sexuality is not discussed at Boy Scout meetings nor should it be..... so this is all moot.....

          • 1 vote
          Reply#109 - Thu Feb 21, 2013 4:44 PM EST

          Religious organizations use Tax Exemption to line their pockets. Let's face it, the Boy Scouts should not be tax exempt. The charge for everything from uniforms to patches. If every Boy Scout Organization "gave" the uniforms to the children and "gave" them camping trips and "gave" them free access to going to Jamborees, then they could be tax exempt. But the CHARGE and that makes them profitable not non-profit.

          I say, take away all tax exemption!!! No one who is an American should be exempt from paying taxes; least of all those OBESE ministers who take people's money to buy RICH FOODS. Take away their tax exemption!!!

          • 2 votes
          Reply#110 - Thu Feb 21, 2013 4:45 PM EST

          George, you don't have any idea how the boy scout troops operate. When I was in the BOA, my mother purchased all my uniform out of extra chore money that I performed and when it came time to go to a camp or attend a really special event, those expenses were paid for by my mother or in some cases by churches, Lions club, Rotary club or other similar organizations. I went to Philmont scout ranch in the mountains of Northern New Mexico as a bonus for my voluntary work around numerous projects in my hometown. My mother had to scrimp funds together for the trip. Nothing was given to me or the other scouts. The scout ranch was donated by a philanthropic many years ago as part of the Maxwell land grant. Our scoutmaster had an old bus we used for transportation and he paid for the gas. I never had so much fun with a group of my contemporaries in my entire life and I shall never forget the sacrifices my mother made and the voluntary efforts of the scoutmaster.

          So the next time you think the BOA is getting huge amounts of public funds lavished on them, think again. From my point of view, being in the scouts would have done you some good.

          • 2 votes
          #110.1 - Thu Feb 21, 2013 5:12 PM EST
          Reply

          Back in 1983, The US Supreme Court affirmed the IRS decision to deny Bob Jone University a charitable tax exemption due to rules prohibiting interracial dating and marriage. Where were you all back then?

          Martin Niemöller (1892-1984):

          First they came for the Socialists, and I did not speak out--
          Because I was not a Socialist.

          Then they came for the Trade Unionists, and I did not speak out--
          Because I was not a Trade Unionist.

          Then they came for the Jews, and I did not speak out--
          Because I was not a Jew.

          Then they came for me--and there was no one left to speak for me.

          • 1 vote
          Reply#111 - Thu Feb 21, 2013 4:46 PM EST

          Young boys in scouting should not be exposed to homosexual scout leaders based on my personal experience.

          • 2 votes
          Reply#112 - Thu Feb 21, 2013 4:48 PM EST

          They should be taxed. And so should every church.

          • 2 votes
          Reply#113 - Thu Feb 21, 2013 4:48 PM EST

          Everyone should be taxed..Lets tax everyone to fking death and have a death tax before u fking die...

            #113.1 - Thu Feb 21, 2013 4:50 PM EST
            Reply

            See what happens when you let the faggots out of the closets...

            • 1 vote
            Reply#114 - Thu Feb 21, 2013 4:49 PM EST

            That's not what you said last night when my shaved Ball$ were in your mouth.

              #114.1 - Thu Feb 21, 2013 5:49 PM EST
              Reply
              Comment author avatarMichael Mellnickvia Facebook

              They should not lose their tax exempt status. Although they should lose the charter they have used to stomp any other scouting organization out of existence, and any public funds they receive.

              • 1 vote
              Reply#115 - Thu Feb 21, 2013 4:49 PM EST

              Any Non-for Profit organization should not have more income than expenses, i.e. not show a profit. If they live up to that principal, they will not pay taxes. If they show large profits, like some religious groups, they should be taxed - simple as that. This way the whole tax exempt situation can be eliminated. Example: if you receive a lot of donation for , let's say feeding the poor, use them to feed the poor; you have a successful fundraiser, spend the money on charitable causes, as intended.

              • 2 votes
              Reply#116 - Thu Feb 21, 2013 4:50 PM EST

              Now the government is "targeting" organizations for votes. That is scary.

              Anyone know why the first ten amendments were put in place? Anyone?

              • 2 votes
              Reply#117 - Thu Feb 21, 2013 4:50 PM EST

              What about all the boy scout organizations that don't discriminate?

                Reply#118 - Thu Feb 21, 2013 4:53 PM EST

                This should be a simple issue. Tax exempt status is supposed to be limited to charitable organizations that do not operate contrary to established public policy. Discrimination on the basis of sexual orientation is contrary to the public policy of California (and should be contrary to public policy throughout the United States). Therefore, groups such as the Boy Scouts, that discriminate in this way, on other than protected religious grounds, should not get to take advantage of tax exemption. See Bob Jones University v. United States (1983) and Roberts v. United States Jaycees (1984).

                • 1 vote
                Reply#119 - Thu Feb 21, 2013 4:54 PM EST

                That is simply not true. A non profit tax exempt status simply means that you spend the money you take in. Nothing more. No profit. Has nothing to do with public policy. But I am sure that some liberal something or another put that into your head and you bought the ticket.

                • 3 votes
                #119.1 - Thu Feb 21, 2013 5:05 PM EST
                Reply

                I want to point out a couple of things to those of you who have never had anything to do with the Boy Scouts. In my home town, almost all the scout troops were sponsored by local churches at their expense and the local camps that we regularly went to on weekends were land donated to the Boy Scouts long ago by private citizens. The various scout troops regularly did community services at no expense to the public and that taught the young boys a sense of responsibility. There was never a single word spoken about gay members or leaders at any time in my seven years in the organization.

                A few years ago when the National jamboree, held every year for many years, fell short of donations and finances to hold the event, The CEO of Exxon Corporation gave his own money and that of his corporation to make up the shortfall and the jamboree was held as usual. Exxon and The Boy Scout headquarters are a mile from each other in Irving, Texas.

                And now I see that the flaming A$$holes in California, where being gay is almost written into the Constitution, want to make life even harder for the BOA. If they want to come down on the boy scouts for not being politically correct, then every exempt organization in the the whole stinking state needs to be included in their bill in order for there to be fairness and justice....................

                • 2 votes
                Reply#120 - Thu Feb 21, 2013 4:56 PM EST

                wow...amazing...all this talk about not " bullying " and the biggest bully on the street is non other than " uncle sam " and all the feeble minded state legislators such as mr. lara of cali...

                • 2 votes
                Reply#121 - Thu Feb 21, 2013 4:56 PM EST

                I don't know who 'posts' to these forums. I imagine it is oldsters, shut-ins and paid political operatives of one side or the other. But my opinion about this whole business of the homosexual's quest for respect is that they are simply people who are ruled by bizarre libidos. In the views of most religions and cultures, they are decadent people who give in to urges most find quite nasty and revel in their sins. They have no business demanding acceptance of their lifestyle. We have no business giving them a forum. The BSA with all its warts exists to foster morally straight young men. This notion of allowing overt homosexuals to have positions of power in the BSA is a contradiction in terms.

                  Reply#123 - Thu Feb 21, 2013 4:56 PM EST

                  Tom343 prefers "Astro-lube" when he's doing "You know what" He's very deep in the closet (if you know what I mean)

                    #123.1 - Thu Feb 21, 2013 5:55 PM EST
                    Reply

                    this is typical of the communist liberal democrats, you dont do things their way then they come after you any way they can.

                    you better watch out if this passes, if you are not a vietnam veteran can you sue because the vietnam veterans of america will not allow you to join? never been in the military, sue the american legion because you cannot join.

                    maybe i can sue the ywca because by being a man i cannot join the club

                      Reply#124 - Thu Feb 21, 2013 4:57 PM EST
                      Comment author avatarMichael Mellnickvia Facebook

                      Oh don't kid yourself this is how politicians work on both sides of the isle. They are able to do so because people like you blindly follow because the other side is soo evil. Its certainly not the liberals going after planned parenthood any way they can.

                      • 1 vote
                      #124.1 - Thu Feb 21, 2013 5:09 PM EST
                      Reply

                      I am a member of a small gay organization that filed for non-profit status in 1997. When we filed our paperwork to the government, they came back to us indicating we had to change our by-laws to meet non-profit requirements because a membership requirement was deemed too restrictive. The item too restrictive was a requirement that stated that in order to be a member of the organization you had to be "gay friendly". I guess if you had non-profit status granted to you years ago before this type of review was done, you're allowed to discriminate. Our group gets no government benefit other than exemption on taxes but we are so small in operations that we barely make any profit to sustain year to year so the government really isn't missing out on tax revenue from us. We are also not of a non-profit classification that allows donations to be tax deductible.

                      • 2 votes
                      Reply#125 - Thu Feb 21, 2013 4:57 PM EST

                      I notice no one has asked the question; why do deviants attack youth groups? What is it about our youth that intrigues them? There is no way I'd want my son or daughter affiliated with deviant behavior. It's wrong, period. If you wish to be gay then be gay. That's your business. Making it our childrens' business is dead wrong.

                      Besides what else does one expect from the land of fruits and nuts. nuff said

                      • 2 votes
                      Reply#126 - Thu Feb 21, 2013 4:57 PM EST

                      Being gay is not deviant.

                      • 2 votes
                      #126.1 - Thu Feb 21, 2013 5:16 PM EST

                      Homosexuality is considered a normal part of human sexuality by the following professional mental health associations: The American Psychological Association, the American Psychiatric Association, the American Association for Marriage and Family Therapy, the American Counseling Association, the Canadian Psychological Association, and the National Association of Social Workers.

                        #126.3 - Thu Feb 21, 2013 5:25 PM EST

                        R U stoopid?

                          #126.4 - Thu Feb 21, 2013 5:36 PM EST
                          Reply
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