oldfart
Older than dirt
I get that the IRS can't question the status of the church, given those parameters. However, my question revolves around the restrictions applied by 501 (c). As I understand it, in order to maintain tax exempt status the organization cannot engage in outright political endorsement. They can put forth a particular message, but they can't say "vote for candidate A". Is that correct?
Well, it's a slippery slope. Legally a church could lose exempt status for overt political activity. In practice the IRS doesn't go there unless it believes the entity is a tax-avoidance scam. So, for example, a pastor from the pulpit is perfectly OK telling his flock to vote for candidates with Christian values, or candidates that are members of the same denomination, or candidates that oppose abortion. But he can't say, "Vote for John Smith".
Another wrinkle is that not all tax benefits of churches are necessarily at risk. I think that a church that established a political campaign fund contributions to which its members attempted to deduct as charitable contributions would not risk loss of exempt status. The fund would be treated as a campaign committee and the contributions treated as nondeductible. The IRS would be far more likely to assert this position.