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Group asks IRS to review Liberty University's tax-exempt status

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Accusations and counter-complaints flew Wednesday between Liberty University and a religious-diversity group in Washington, D.C.

Americans United for Separation of Church and State said it would ask the Internal Revenue Service to investigate Liberty University’s tax-exempt status because the school revoked its recognition of the College Democrats club.

Liberty Chancellor Jerry Falwell Jr. said the university would, in turn, ask the IRS to investigate the complainers, whom he called “a Democratic front group.”

“We are planning to file a complaint against AU,” Falwell said, because the group has the same tax-exempt status Liberty holds under IRS code 501(c)(3) for religious and educational groups, Falwell said.

“AU seems to only file complaints against other 501(c)(3) groups that don’t support AU’s liberal agenda,” Falwell said.

“We have noticed a pattern of them favoring the Democratic Party over the years and we have documented that pattern,” Falwell said.

Americans United for Separation of Church and State said in a letter to the IRS that “Liberty University may have violated federal tax law in denying recognition to this club while extending it to a Republican organization.”

Liberty’s revocation of the Democratic club’s status means it won’t receive funding from the university that apparently will be available to the College Republican club, the church-separation group said.

Because campus political clubs work on behalf of candidates, “the university’s decision offers Republican candidates a type of in-kind contribution that is not being made available to Democratic candidates,” said the AU letter, which was signed by Barry Lynn, its executive director.

“By banning a Democratic club while permitting a Republican club to exist and offering funding to the latter but not the former, university officials appear to be operating in violation of federal tax law,” Lynn’s letter said.

Falwell has repeatedly said the College Democrats club was not banned. It is permitted to exist as an unofficial club and its members can meet in unused classrooms, the student center or cafeteria, Falwell said.

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