The Internal Revenue Service has concluded that Senator Barack Obama’s church, the United Church of Christ, did not violate nonprofit tax laws when Senator Obama addressed the denomination’s 50th anniversary General Synod in June 2007.

You may recall that the IRS was investigating the denomination claiming that it had “reasonable belief” that the circumstances surrounding the speech had political overtones. Nonprofit organizations, including churches, are prohibited from engaging in behavior that urges support for a political candidate.

The IRS determined that the UCC had made several attempts to stay in compliance noting that the invitation to Obama came “well before he announced his candidacy and that [he] was invited to speak … in a non-candidate capacity, on how his personal faith intersected with his public life.”

Additionally, the IRS found that the UCC had advised those in attendance that Senator Obama was there as a member of the church and not as a candidate for office, that the audience should not attempt to engage in any political activities, and that the church’s legal counsel had advised Senator Obama’s campaign on the ground rules for the speech.

The IRS also concluded that the UCC did not authorize campaign volunteers to set up tables near the entrance of the Hartford Civic Center and that the UCC website provided a link to the IRS fact sheet on prohibited campaign-related activities by non-profit groups. The church’s legal counsel was also found to have properly advised UCC leaders regarding their responsibilities.

The UCC was represented in the matter by the law firm of Wilmer Cutler Pickering Hale and Dorr on a pro bono basis.