Recently, a page of lnternal LDS Notes on Prop 8 was released on the Internet. In the first paragraph,
Elders Ballard, Christopherson [sic] & Clayton met last week with leaders of the Coalition for 2 hours. The brethren emphasized that there wasn’t much participation from non-LDS people. The work depends on us.
Elders Ballard and Christofferson are members of the Quorum of the Twelve Apostles, second only to the First Presidency in LDS Church hierarchy; Elder Clayton is a member of the Presidency of the Seventy. These words are unequivocal: “there wasn’t much participation from non-LDS people.”
In addition to providing about half of the funding for ProtectMarriage.org, this memo makes clear that the LDS Church understood that its members were primarily responsible for the corresponding volunteer effort. Moreover, Church officials at the highest levels were involved in organizing this volunteer effort.
Why are people singling out the LDS Church? Because they were singular in their support for Prop 8.
Why does this have anything to do with tax-exempt status? Because the IRS considers volunteer effort when determining whether an organization meets the “no substantial part” test.