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

Jump to discussion page: 1 2 3 4 5 6 ... 11

If this legislation is wrong because of free speech concerns, why are conservative and Republican attempts to tie tax exempt status and government funding for some PBS programs and similar programs and organizations because of concern over their stands or expressed views legitimate? Trying to claim a difference in circumstances would be the crassest case of splitting hairs. You can't call for an examination and consequences regarding Sesame Street's funding or tax status because of concern over perceived political leanings yet uphold tax exempt status and not question the Boy Scouts or other nonprofit funding when those groups take discriminatory positions. There's just no way that is not a double standard!

  • 1 vote
Reply#76 - Thu Feb 21, 2013 4:18 PM EST

Exactly. Now you see why the Liberal/Progressives should not demand the BSA lose its tax exempt status. The Liberal/Progressive programs would suffer much more.

  • 2 votes
#76.1 - Thu Feb 21, 2013 4:32 PM EST
Reply

I think no organization should enjoy tax exempt status. If you want to support National Public Radio, then makde a donation that does not permit you to take a charitable deduction on your tax return. People who do not itemize and who make gifts to organizations are in that situation now. We all should be. Ditto the Boy Scouts or the Disabled American Veterans or the Sierra Club. They should be fully supported by like-minded people without indirect subsidization by the Internal Revenue Code. It that means contributions go down, so be it.

  • 1 vote
Reply#77 - Thu Feb 21, 2013 4:18 PM EST

I don't see any body complaining about the catholic church and the policy that ban's women and gay's from priesthood!

  • 2 votes
Reply#78 - Thu Feb 21, 2013 4:19 PM EST

Just stop giving money to the Boy Scouts and let this christian organization close. Those boys can just be in street gangs like they have in chicago." bang bang "

  • 2 votes
Reply#79 - Thu Feb 21, 2013 4:19 PM EST

as usual, the moral idiots keep trying to promote stupidty and degeneracy while they want to destroy decency.

those who hate the boy scouts have a moral sickness, called stupidity, where they remain unable to differentiate between personal responsibility and irresponsibility. they never learned higher values, evidence they likely have a college degree, probably a graduate one. they are convinced the world will become a better place once all difference between male and female are erased.

we live in the age of stupidity and self-destruction, ushered in by the baby-boom generation, almost all of whom on the left continue to prove they are fools. to find such at every turn, look no further than California.

  • 2 votes
Reply#80 - Thu Feb 21, 2013 4:19 PM EST

Maybe all straight people in the US should join these gay & lesbian groups and when we get enough new members in them, we can take over these groups and impose our will on them!

  • 3 votes
Reply#81 - Thu Feb 21, 2013 4:20 PM EST

same-sex behavior is by definition perverted, unnatural, and degenerate. by definition.

male is not the same as female.

same-sex is not the same as male-female.

all human life was created by the union of male-female. a rule with zero exceptions.

no human life has ever been or can ever be created by the union of female-female or male-male. a rule with zero exceptions.

all behavior is learned and taught, from birth, and always a choice, based on values, what people hold more important than their lusts, desires, impulses, attractions. values determine what people decide. everybody chooses to do what they want to do. always. nobody does anything against their will and choice or else it is a crime.

behavior is a choice. period end of story. to claim otherwise if a steaming heap, just ask Sandusky.

  • 3 votes
Reply#82 - Thu Feb 21, 2013 4:20 PM EST

I support the Boy Scouts of America. I was a scout, my son is a scout and I participate as a scout leader. We are members because I like the organization, what it teaches and its values.

If you dont, then thats your right. If your gay, then thats your business, keep it in your private bedroom.

I dont want gays in my scouting program, but I also dont want criminals in the program, drunks, druggies or womanizing degenerates. People are free to be all of the above and I support that freedom, in your personal life......not in scouting. When they become adults and leave scouting the young men can choose what they want to be or accept in life. The Boy Scouts of America is a private organization and not a place to experiment with social agendas.

That information and education should come in the home by the parents.

  • 2 votes
#82.1 - Thu Feb 21, 2013 4:32 PM EST

Sexual preference is a private matter...agreed. No one is suggesting that it should be displayed or taught to children at Boy Scouts...the issue is about discrimination. The BSA should not discriminate based on what they stand for. If they represent a Christian ideal...I can't believe that Christ would turn anyone away.

  • 1 vote
#82.2 - Thu Feb 21, 2013 4:38 PM EST
Reply

With the impending austerity in the US, all State and Federal funding and tax breaks should be dropped. Both sectarian and non-sectarian. Taxpayers should not have to pay for all of these special interest groups.

    Reply#83 - Thu Feb 21, 2013 4:21 PM EST

    welcome america to 1984, the liberal now want all citizens to tow their line or they will use the power of govt to destroy you. sad day for american freedom

    • 5 votes
    Reply#84 - Thu Feb 21, 2013 4:21 PM EST

    No, it's 2013! It is time conservatives change with the times...

    • 1 vote
    #84.1 - Thu Feb 21, 2013 4:35 PM EST

    Evidently you never heard of George Orwell. Must have skipped literature classes.

      #84.2 - Thu Feb 21, 2013 5:35 PM EST

      We are there Pat Smith....scary, isn't it?

      • 1 vote
      #84.3 - Thu Feb 21, 2013 7:11 PM EST

      I got the analogy...you missed the sarcasm. You are born with that gift

        #84.4 - Thu Feb 21, 2013 8:02 PM EST
        Reply

        Tax the gay community - they have deep pockets.

        • 4 votes
        Reply#85 - Thu Feb 21, 2013 4:21 PM EST

        Tax planned parenthood and stop federal subsidies to this crappy organization.

        • 3 votes
        #85.1 - Thu Feb 21, 2013 4:22 PM EST

        Yeah, all they do is provide health care to women who can't afford them. What a bunch of jerks!

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

        I agree, I don't think there should be any tax exemptions BSA, NHL,NFL, etc..period!!!!

          Reply#86 - Thu Feb 21, 2013 4:23 PM EST

          I think gay people are wrong, diluted,
          miss guided, and mostly don’t give a crap what others think or feel, as
          evidenced on a daily basis. How about you stop trying to cram your abnormal anti-natural
          life style down everyone’s throat! GO start your own gay boy scouts club, and
          stop telling all us that we have to accept you…. We don’t and most of us never
          will, it’s just that most don’t have the balls to say it!

            Reply#87 - Thu Feb 21, 2013 4:24 PM EST

            They aren't asking the Boy Scouts to become gay...I support them and this cause. I think more people disagree with you.

            • 1 vote
            #87.1 - Thu Feb 21, 2013 4:33 PM EST
            Reply

            Why would a gay or lesbian want to join the Boy Scouts of America??? The doctrine and philosophy of the BOA is in direct disagreement with a gay lifestyle, and a criminal lifestyle, and a degenerate lifestyle......

            So why join and be a productive part of an organization and support their belief if its NOT your belief. This is why I doubt any sincerity pertaining to gays wanting to be in scouting......they dont want to become a contributing part of scouting.....they targeted it to force a change to show others their power.

            The goal and agenda is to penetrate and destroy the organization because they personally dont agree with it.

            IF you want a scouting program that supports and endears the gay lifesyle.....then start one. Organize and start your own scouting program and compete. It is a private organization and you are allowed to start one of your own based on your values and beliefs.

            • 1 vote
            Reply#88 - Thu Feb 21, 2013 4:24 PM EST

            I applaud any group that demands to simply be accepted.

            • 1 vote
            #88.1 - Thu Feb 21, 2013 4:32 PM EST

            I was a Boy Scout many years ago. The Assistant Scout Master tried to feel mse between my legs. I car asked him to leave me out of his car. I told my mother what happened. She talked to the Scout Master.

            The Assistant Scoutmaster was gone at the next meeting. Young boys should not be treated like that.

              #88.2 - Thu Feb 21, 2013 4:37 PM EST

              Homosexuals are not pedophiles

                #88.3 - Thu Feb 21, 2013 5:00 PM EST

                Does that apply to NAMBLA? I hope not. Jack Dulouz

                • 1 vote
                #88.4 - Thu Feb 21, 2013 7:13 PM EST
                Reply

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

                • 2 votes
                Reply#89 - Thu Feb 21, 2013 4:24 PM EST

                If this is the way people are going to be, all I can say, is where can I donate to the Boy Scouts? Nothing stopping them from accepting private donations from supporters.

                I totally support the Boy Scouts, what they've always stood for, and will never agree with the Gay agenda.

                Especially, their attacks & intimidation tactics, destroying people's reputations and livelihoods of anyone who would dare to disagree with them. Years ago, I posted about this issue & two cars full of gay rights supporters somehow tracked me down and showed up in our driveway. They even had the nerve to hack our phone and emails and let us know who they were!

                Yet, while they were sitting there laughing like idiots, I was inside busy taking pics of their license plates, and reporting them. And I make no apology whatsoever. I could care less what they think. I refused to be intimidated into silence then and refuse to be intimidated now.

                Our kids were in the scouts and we would never have allowed them if there were gay scoutmasters. It's just one more method of indoctrination. Thirty years ago, I predicted things like this would happen just to create future prey and I wasn't wrong. Don't like what I post? Don't care!

                We have free speech rights too, a right to privacy, and a right not to be harrassed for our beliefs.

                  Reply#90 - Thu Feb 21, 2013 4:25 PM EST

                  I agree completely with this proposed legislation; it should be adopted on the federal level, too. No one is forcing the BOA or any other non-profit to change their policies, and this is certainly not an infringement on free-speech rights. This bill simply says that IF you choose to discriminate, in violation of the laws addressing sexual orientation et al, then you lose your tax-exempt status. It's their choice. But why should any government reward them with a tax-exempt status for their discriminatory policies? My only complaint with the proposed legislation is that it is too limiting in it's scope; it should apply to ANY non-profit organization, including religious organizations. If they pay their taxes and accept no public funds, then they should be free to apply discriminatory policies in their membership rules, as a private club.

                  • 1 vote
                  Reply#91 - Thu Feb 21, 2013 4:28 PM EST

                  does that include forcing taxpayers to pay for abortions??? planned parenthood is a non profit accepting fed funds.. and they kill fetus'... that is WORSE!! but the left thinks that is ok..

                  • 2 votes
                  #91.1 - Thu Feb 21, 2013 4:30 PM EST

                  Chiapetto, then stop funding Planned Parenthood, they discriminate against my belief on abortion. Stop funding Media Matters who violates my "feelings" on King Obama. The stop funding the illegals who get more social support than actual citizens. Then stop funding Affirmative Action which in its entirety is racist.

                  • 3 votes
                  #91.2 - Thu Feb 21, 2013 4:31 PM EST
                  Reply

                  sounds like the same argument the right uses against planned parenthood..only when its the left, its somehow different.. gays vs.unborn children....right vs left... which side are you on? the diff is all of us pay for abortions, but all of us dont pay for boy scouts..

                  • 1 vote
                  Reply#92 - Thu Feb 21, 2013 4:28 PM EST

                  How is it the same? Who does Planned Parenthood discriminate against? Do you know someone that was denied an abortion because they were a Republican?

                  • 1 vote
                  #92.1 - Thu Feb 21, 2013 4:30 PM EST

                  My money goes for something I don't believe in. That's how its the same. It is truly amazing how the left just can't see anyone elses opinion - they are just mentally deficient.

                    #92.2 - Thu Feb 21, 2013 4:32 PM EST

                    Steve, you can't pick and choose how each of your own tax dollars is spent. In this country we elect politicians to do this for us. If we are unhappy about how these dollars are being spent, we simply elect someone else. What is happening in this country is that the politicians that share your opinion were not elected. You need to get over it. Conservatives will return and perhaps your opinions will be relevant again. Don't you understand how it works?

                      #92.3 - Thu Feb 21, 2013 4:59 PM EST
                      Reply

                      How about we eliminate all tax exemptions for any group with any agenda that could hurt the feelings of someone else, like the DNC,RNC, all churches, all ethnic/race groups, women's groups, men's groups, children's groups, adult groups, old age groups, pro environmental groups, anti-environmental groups, any group that promotes any kind of job, any group that opposes any kind of job, any group that dislike immigration policies, any group that likes immigration policies, group for any other country, groups against any other country, groups that are pro-gun, groups that are anti-gun, groups that are pro-poor, groups that are anti-poor... well you all get the idea: every group, by its very nature has policies others don't like or discriminate against someone else by not providing those services to everyone. How about we get back to being a free country where people are allowed to disagree with a lifestyle, race, religion, creed, policy, or belief and still be part of America.

                      If you don't like some group or another, don't support it. Let those who do like said group support it. That is what America is supposed to be about. Or at least that is what allowed us to become strong while being diverse.

                      Trust me, if there was a big enough interest for a guy oriented scouting program, then someone would have or will start it. Let that compete with BSA and see where it all shakes out. But realize, that if such a group forms some will be offended because they will not want to be around guy people, which is their right just as it is the right of those who want gay scouts and leaders to oppose a non-gay oriented organization.

                      Just realize the pro-gay groups have no more or less right then the anti-gay groups do and the feelings of both should matter to all.

                      • 1 vote
                      Reply#93 - Thu Feb 21, 2013 4:28 PM EST

                      Let's see if the BSA changes their tune now that the issue involves money...Pitiful that a group like the BSA even discriminates at all...worse that it will take money to force change. Time to do the same to churches or any other group that discriminates another group of people. If you want tax exemption...open your doors to all!!

                      • 1 vote
                      Reply#94 - Thu Feb 21, 2013 4:29 PM EST

                      Like Affirmative Action?

                        #94.1 - Thu Feb 21, 2013 4:33 PM EST

                        I am not for affirmative action...although "Afirmative Action" is not a tax exempt group of people.

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

                          Let's kick the Boy Scouts. We don't want any of that "Do my duty to God and my country" stuff.

                          • 2 votes
                          Reply#95 - Thu Feb 21, 2013 4:29 PM EST

                          screw voting, time for a revolution

                          • 1 vote
                          Reply#96 - Thu Feb 21, 2013 4:33 PM EST

                          It would be over pretty quick, with the left attacking the right with staplers and scissors (referencing their new workplace violence ad). The left are a bunch of pussy's.

                          • 1 vote
                          #96.1 - Thu Feb 21, 2013 4:34 PM EST

                          Juvenile

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

                            but funny, Steve

                            • 1 vote
                            #96.3 - Thu Feb 21, 2013 7:16 PM EST
                            Reply

                            This will just go to show how LOW California will go to accommodate the minority out there. They will get support from the liberals out there and Obama along with Finstiner and Pestolosie. I think they are all three Queer. If this went to the public for a vote the exempt status would stay. If this does go thru it means that most if not all Black organizations must be taxed also...... What a turn of events.

                              Reply#97 - Thu Feb 21, 2013 4:36 PM EST

                              Time to put a fence around California and call it the national zoo. Leave the minorities to bottom feed off of each other.

                              • 1 vote
                              #97.1 - Thu Feb 21, 2013 4:38 PM EST

                              Good thing that racists like you two are now the new minority...

                                #97.2 - Thu Feb 21, 2013 6:24 PM EST
                                Reply

                                For California, this is killing two birds with one stone.

                                First, they are advancing their big government liberal socialist agenda, and second they are trying to raise more money to support their big government liberal socialist agenda.

                                • 1 vote
                                Reply#98 - Thu Feb 21, 2013 4:37 PM EST

                                They can't do it, people and companies are leaving in droves. Jerry "Moonbeam" Brown wants to introduce legislation to tax companies who leave the state. This is how moronic the left has really become. It would be nice to see a liberal with their hands in their own pockets for a change.

                                • 2 votes
                                #98.1 - Thu Feb 21, 2013 4:40 PM EST
                                Reply

                                I am so sick and tired of these subversive groups demanding to punish any group that does not accept there twisted views. These organizations have the freedom to admit who they want. Once we force groups to admit any and everyone we will have such things as grown men joining the girl scouts. If the homosexual crowd does not like the BSA then they should start a group of their own. That would be the best for all concerned. They then could have there own agenda and bylaws and also be tax exempt.

                                • 3 votes
                                Reply#99 - Thu Feb 21, 2013 4:38 PM EST

                                I knew this was coming. The gay movement says we just want acceptance. It wants to undo every decent morale idea that comes along and now they again attack the BSA. And California is where it starts. And always has. That is one reason why i moved. Well world unless you bend over to there will they will attack them until everyone is gay or accepts it as a way of life. Now the other organizations can go forth. Like MANBLA, how about those that want sex with animals. You say no that can't happen well it's coming to a place next to you. Remember it may no be your way of life butt it is someone's and the 2% always makes the rules for the rest.

                                • 2 votes
                                Reply#100 - Thu Feb 21, 2013 4:38 PM EST

                                It wants to undo every decent morale idea that comes along and now they again attack the BSA.

                                You're right.....if hate and bigotry are the "decent morals" you hold.

                                  #100.1 - Thu Feb 21, 2013 4:44 PM EST
                                  Reply
                                  Jump to discussion page: 1 2 3 4 5 6 ... 11
                                  You're in Easy Mode. If you prefer, you can use XHTML Mode instead.
                                  As a new user, you may notice a few temporary content restrictions. Click here for more info.