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

Discuss this post

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I am in complete disagreement with the BSA's policy and would not allow my son to be associated with the BSA because of the intolerance it demonstrates.

I also disagree with this proposed law. This is not the way to change the BSA. Time will change things.

This is a real slippery slope. I live in Texas and can tell that there are some liberal non-profits many Texans would love to yank tax exempt status from.

This just isn't the way.

  • 1 vote
Reply#51 - Thu Feb 21, 2013 3:55 PM EST

they should be Taxed...there are to many in this country that get away with not paying taxes...so many force their views on us and get away with not paying taxes and ends up on the poor and middle class to pay for everything as the country goes deeper in the Red and really can't afford to pay the bills...i don't see why churches don't pay taxes...listen to Pat Robertson as sits there on TV begging for money as he bad mouths Obama and tells his followers who to vote for...the times i have listen to him on he NEVER has one nice thing to say about Obama...so feel once you start saying how this country should be run and by whom and you mandate how Americans should be living then time you start paying your taxes...

  • 2 votes
Reply#52 - Thu Feb 21, 2013 3:57 PM EST

Ever hear of separation of Church and State? Well you Liberals insisted the Church be separate and not allowed anywhere on public property. Since you cannot have it both ways they will have to maintain their tax free status.

  • 1 vote
#52.1 - Thu Feb 21, 2013 4:12 PM EST
Reply

Ricardo must like it in the pooper.

    Reply#53 - Thu Feb 21, 2013 3:57 PM EST

    If they want to push people to absolutely hate homosexuals this is the way to do it. The Boy Scouts have spoken for the majority of their members and chose not to change their bylaws. So now because they lost these subversive groups want to punish them by attempting to destroy them. How pathetic is that? Do as I want or else I will ruin you. This is the very reason I cannot stomach Liberals/Progressives in any way. They just cannot accept what the majority want. Please God strike them all dead.

    • 1 vote
    Reply#54 - Thu Feb 21, 2013 3:57 PM EST

    Please God strike them all dead.

    I guess the fact that he hasn't proves he doesn't exist.

    • 2 votes
    #54.1 - Thu Feb 21, 2013 4:02 PM EST

    Please God strike them all dead.

    God needs better pimps, you guys are a joke.

    • 1 vote
    #54.2 - Thu Feb 21, 2013 4:08 PM EST

    Well GGP and Sunny I cannot cure your ignorance nor do I care too. Because God has not granted my request proves nothing concerning his existence. I choose to believe in his existence because if he does exist both of you will be headed to the big grill. If he does not exist I merely lost a small amount of time but gained spiritual strength through trying times in life. Either way I win losers.

      #54.3 - Thu Feb 21, 2013 4:16 PM EST

      Larry,

      If you were truely a God loving person, you would not ask him/her to strike anyone dead. No one is attempting to destroy BSA or punish them. If they want to keep thier tax exempt status and use public lands, they must follow the law of the land. Discrimination is not legal in this country in any form or shouldn't be. This is one of the last bastions where discrimination is considered OK. This is a discrimination issue not a partisan issue. Everyone should be concerned with discrimination whichever form it comes in. I personnally think BSA and GSA are great organizations for children where much can be learned. Lessons that they would carry with them all of thier lives. If one of the lessons they teach is discrimination though, I don't want my children to learn that and would not allow them to be a part of that. For our society to truely be free, we must eliminate discrimination in every form. Sometimes, things such as this must be forced. If not for the Civil Rights Act, just to name one, we would still have seperate societies for blacks and whites, two classes of citizens and a very different kind country would be where we live now.

        #54.4 - Thu Feb 21, 2013 4:19 PM EST

        Lois,

        Sorry you are wrong. The BSA is a private group and private groups should be allowed to have in their membership who they choose too. Just because they are a non-profit that is a private organization they are entitled to maintain their exempt status. Believe me there are many more Liberal groups and charities who would suffer much more if this type of thinking is pushed. better to leave well enough alone.

        • 1 vote
        #54.5 - Thu Feb 21, 2013 4:29 PM EST

        They didn't choose not to change their bylaws. They just punted for a couple months.

          #54.6 - Thu Feb 21, 2013 5:20 PM EST

          "I choose to believe in his existence because if he does exist both of you will be headed to the big grill. If he does not exist I merely lost a small amount of time but gained spiritual strength through trying times in life.."

          Larry, I'm sure God is so happy you are spiritual "just in case there is a God", As if your religious conviction is just a back up plan.

            #54.7 - Thu Feb 21, 2013 5:41 PM EST

            CD11

            "I choose to believe in his existence because if he does exist both of you will be headed to the big grill. If he does not exist I merely lost a small amount of time but gained spiritual strength through trying times in life.."

            Larry, I'm sure God is so happy you are spiritual "just in case there is a God", As if your religious conviction is just a back up plan.

            that's basically what Larry is saying, in fact its basically what a LOT of people use religion for - a backup plan just in case the stories are true. its a great insurance policy - you can screw up all you want, ask for forgiveness and be rewarded later after you pass on.

            • 1 vote
            #54.8 - Thu Feb 21, 2013 5:49 PM EST
            Reply

            I do not wish any portion of my tax contribution to pay for any group that furthers racism, sexism or homophobia. The Boy Scout's insistence that they keep an antiquated, anti equality policy is, currently, their own decision to make. I do not argue the right of these groups to exist, but I do not believe that I should be required to cover the taxes not paid by political pulpits in disguise.

            • 4 votes
            Reply#55 - Thu Feb 21, 2013 3:58 PM EST

            So do you really think that this is still a free country?

            • 1 vote
            Reply#56 - Thu Feb 21, 2013 3:59 PM EST

            Yeah, sure. Why not. Take away the BSA's tax-exempt status.

            Any organization, any individual and any "haters" out there, beware:

            If you don't think, speak, believe and act the way the Facists want you to - you're next!

            It may be a while, but the pendulum will swing back to sanity, in the not-too-distant future. His Majesty only has 3.5 years left in office; if the American voters are stupid enough to repeat the same mistake thrice (with yet another malevolent politician) we are doomed...

            Hang in there.

            RICO

              Reply#57 - Thu Feb 21, 2013 4:02 PM EST

              The GOP will never again win the presidency. In fact, the demographic trends will eventually destroy the GOP, relegating it to the dust bin of history. Good riddance.

              • 4 votes
              #57.1 - Thu Feb 21, 2013 4:05 PM EST

              What you say has no chance as people will soon tired of collecting food-stamps and being unemployed with no hope of progressing. That and the eventual bankruptcy of the country leading to depression will bring the GOP roaring back.

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

              It's the boy scouts for pete's sake..does anyone take them seriously? They should not be tax exempt regardless of their views on gays and acceptable love for child molestors. It's a freaking club nothing more..babysitters with uniforms

              • 3 votes
              Reply#58 - Thu Feb 21, 2013 4:03 PM EST

              Do the Girl Scouts embrace homosexuality, or is this just more male bashing ?

                #58.1 - Thu Feb 21, 2013 4:08 PM EST

                Do the Girl Scouts embrace homosexuality, or is this just more male bashing ?

                Are you clueless?

                • 1 vote
                #58.2 - Thu Feb 21, 2013 4:10 PM EST

                The GS of America, a separate organization from the Boy Scouts, does not discriminate on the basis of sexual orientation.

                • 2 votes
                #58.3 - Thu Feb 21, 2013 4:16 PM EST
                Reply

                It seems that in my state of California, the flacks and nuts run the government.

                • 2 votes
                Reply#59 - Thu Feb 21, 2013 4:04 PM EST

                When you think that the majority are nuts, maybe it's time to look in the mirror.

                • 3 votes
                #59.1 - Thu Feb 21, 2013 4:07 PM EST

                Sorry GG&P, but I don't believe Gays and their supporters are in the majority. I think they are just motivated and louder.

                Unless the majority gets off the couch and gets to the public square, the fourth branch of the new Amerikan government will be the special interest groups.

                • 1 vote
                #59.2 - Thu Feb 21, 2013 4:24 PM EST

                Ahem. I do not read anything in car31's post that says the majority are nuts. I pretty sure the post states the government is run by flakes and nuts. Tried reading comprehension exercises lately?

                  #59.3 - Thu Feb 21, 2013 4:25 PM EST
                  Reply

                  So now the leftest government is going to tell groups and people who they should admin. Were loosing more and more rights everyday and people seem to think it's okay. A person has the right to free speech, and being politically correct is not free speech. The government needs to stay out of there and other groups business. The boyscouts have helped millions of kids, and just the the left to screw that up too because they don't follow there rules. This is a free country, and just because you don't like what some else does, doesn't mean you should have a bill passed to hurt that person/group. Another reason for me to turn down every job offered and stay of California

                  .

                  • 1 vote
                  Reply#60 - Thu Feb 21, 2013 4:05 PM EST

                  Good, stay away.

                  • 1 vote
                  #60.1 - Thu Feb 21, 2013 4:11 PM EST
                  Reply

                  And so it begins - - this is the first 'stomp' by government in forcing the public and organizations(s) to not just recognize the gay community, but embrace and endorse. Certainly this will be aimed at any religious group that does not allow homosexuals in the pulpit, or gay marriage ceremonies within their properties. This is the hammer a totalitarian government will use to force the public to bow to its will.

                  • 1 vote
                  Reply#61 - Thu Feb 21, 2013 4:06 PM EST

                  All since OBAMA has been elected....have you noticed? 10s2009

                  • 1 vote
                  #61.1 - Thu Feb 21, 2013 6:59 PM EST
                  Reply

                  We as a society have now hit a new low.

                  If you have opinions that don't "promote" everyone is equal, you're wrong.

                  Effff that bro. I'm white and I sure the heck didn't get as many shortcuts and payouts as minority groups. I'm not in the KKK or care about what color you are, but you ARE discriminating against whites. Why?

                  The fact that boy scouts is now being black-balled into accepting gays is outrageous.

                  Also, think about this: People are trying to get "gays" into scouts. And once you're 18, you have to have gotten your Eagle, or get out. SO EVERYONE IS TRYING TO PROMOTE KIDS HAVING GAY SEX. That's what it comes down to. It's not about being gay, it's about the fact they can't have active sexual activities with the other scouts! ie: minors having sex

                  Wake up people. This ideology is trash, and you're contributing to it.

                  • 1 vote
                  Reply#62 - Thu Feb 21, 2013 4:06 PM EST

                  SO EVERYONE IS TRYING TO PROMOTE KIDS HAVING GAY SEX.

                  Huh? No one is promoting gay sex. Unlike Christians, gays do not recruit. You're either born gay or you're not. Moreover, the BSA is not about sex. It's about tying knots and camping and sh!t like that. Boys who realize they are gay should have the same right as every other boy to participate in scouting without facing discrimination.

                  • 2 votes
                  #62.1 - Thu Feb 21, 2013 4:13 PM EST
                  Reply

                  so now we can start forcing religious groups to do what someone else thinks they should do? yeah, that's freedom.

                  • 1 vote
                  Reply#63 - Thu Feb 21, 2013 4:07 PM EST

                  Beware of supporting the use of tax laws by the government to change policy, your organization could be next and if you condone it you should also be taxes. Remember that as far as the government is concerned if they can get away with it one time then it becomes an accepted practice.

                  • 1 vote
                  Reply#64 - Thu Feb 21, 2013 4:07 PM EST

                  California is thumping the first domino. Don’t agree with the government? Have a tax levied against you. Don’t think the way we want you to think, have a fine – oh sorry, a tax.

                  • 1 vote
                  Reply#65 - Thu Feb 21, 2013 4:08 PM EST

                  Sarah-3043284

                  Go clean some more carpet Sarah, if you believe that your groups, GLBT, have such a large ground swell support , then start you own organisations, the GLBT Scouts, Butt Buddies, Back Packers, just a few suggestions.

                  Why do you feel you have to shove your misguide beliefs onto other people? Your groups will push to hard and will get a massive backlass someday. Not going to be happy until every one accepts your perverted behavior?

                  Just my view of course but I bet your parents are so proud of your, most of the people I have meet who are of your persuasion have had a traumatic event that precipitated there change to your life style choice, molested by an adult relative or friend of the family, which on is yours?

                    Reply#66 - Thu Feb 21, 2013 4:08 PM EST

                    Oh come on. If the government needs tax money go after alcohol. Just like tobacco. Hell, alcohol's killed more in accidents and destroyed more families and marriages than anything out there, yet they sure don't want to attack it with as much relishment as guns and tobacco. But then they are sitting up on Capital Hill drinking their high dollar Scotch.

                    • 1 vote
                    Reply#67 - Thu Feb 21, 2013 4:11 PM EST

                    Boys should declare the scouts a religious organization and remain exempt.

                    • 2 votes
                    Reply#68 - Thu Feb 21, 2013 4:13 PM EST

                    If the BSA does'nt get in line with the liberal mantra, of course they'll be taxed. That's what we've come to.

                    • 2 votes
                    Reply#69 - Thu Feb 21, 2013 4:14 PM EST

                    Only in CA. The state overrun by liberal idiots!

                    • 1 vote
                    Reply#70 - Thu Feb 21, 2013 4:14 PM EST

                    i hope the bsa stands firm on keeping diviants out of their organization. i pay taxes too, just like their parents and consider them more than welcome to them.

                      Reply#71 - Thu Feb 21, 2013 4:14 PM EST

                      Start the gay scouts then you'll be happy

                      hand out BJ merit badges too

                      • 1 vote
                      Reply#72 - Thu Feb 21, 2013 4:15 PM EST

                      Are you also suggesting the Black Boy Scouts and Latino Boy Scouts and anyone else that doesn't qualify as White and Christian? That is the agenda the BOA pushes......

                      • 2 votes
                      #72.1 - Thu Feb 21, 2013 4:19 PM EST

                      That's a LIE......Beauford! When were you a scout....how would you know? Just liberal Kool Aid drinking as usual. By the way, it is BSA....Boy Scouts of America....not BOA....Bank of America....yeah, you really know what you are talking about.

                      • 1 vote
                      #72.2 - Thu Feb 21, 2013 7:02 PM EST
                      Reply

                      When sexual orientation become a reviewable state for discrimination? Gender, race, nationality are things that cannot be chosen, and while religion can be, many are born, live and die, into it. I have seen where gender identity is also becoming a reviewable state for discrimination.

                      Regardless of what can be discriminated against or not, the government should have no right in determining what a private organization will or will not allow into their organization. If the government funds are received, and the agreement between the private organization and said government for the distribution of those funds is adherence to a limited discrimination policy then there is room for lawsuit. However, if those funds are received as generally available, no strings attached, then the government needs to step back and do so quickly. Creating a law to deny tax exempt status to force such an organization to either accept what is PC is absolutely wrong. Any group that promotes something like this is openly discriminatory as well. If this new law is passed, the LGBT advocacy group should also lose its status.

                      • 1 vote
                      Reply#73 - Thu Feb 21, 2013 4:16 PM EST

                      while we are at it let's quit using MY tax money to pay for abortion, condoms, weed, and illegals. Then get back to me about the Boy Scouts not wanting gays trying to sleep with them on campouts.

                      • 1 vote
                      Reply#74 - Thu Feb 21, 2013 4:17 PM EST

                      The Boy scouts will eventually give in. Not because they will have changed their
                      beliefs, but because Christians as a whole have no spine. The Boy Scouts can not survive without
                      donations and the donations will not come.

                      If every church donated $10 a month to the Boy Scouts, their budget would be so huge that none of the liberal crying about letting in Gays would matter. If everyone who professes to be
                      a Christian actually acted, wrote, and voted the way they believe, we would not
                      have had 1/3rd of the issues we have had in this country. There would never have been slavery,
                      abortion, most murders, heck, the list would go on forever.

                      Don’t believe the way we tell you to, have a fine. Don’t like it TOO BAD! (We already took your guns, ha, ha, ha….)

                        Reply#75 - Thu Feb 21, 2013 4:17 PM EST
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