Not all 501(c)(3) tax-exempt organizations are created equal. For the purposes of this post, we need only consider two types: those which are churches or directly related to churches, and those which are not. Some comments have incorrectly asserted that pro-gay organizations which donated to oppose Proposition 8 should also lose their tax-exempt status for attempting to influence legislation. Non-church 501(c)(3) organizations are entitled to elect to engage in even substantial lobbying activities (except promoting or opposing a candidate), provided they pay tax on excess lobbying expenditures under Sections 501(h) and 4911 of the Internal Revenue Code Title 26.
This is why the law reads “… no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h))…”
I expect that non-church groups, such as Lambda, GLAAD, and the L.A. Gay and Lesbian Center, which opposed Proposition 8, made appropriate 501(h) elections if they did in fact engage in substantial activities attempting to influence legislation. Churches, like the LDS Church, are disqualified from making that election under Subsection (h), and are therefore more restricted in their ability to attempt to influence legislation.
(5) Disqualified organizationsFor purposes of paragraph (3) an organization is a disqualified organization if it is—