Churches and Charities After the Unsuccessful Settlement: Protecting Exemption Through Campaign Limits, Lobbying, and Affiliates

Patrick Sternal, Of Counsel | Holtzman Vogel

Patrick Sternal is of counsel at Holtzman Vogel in Washington D.C. He has extensive experience in tax-exempt and nonprofit organization law, including as an Attorney Advisor in the IRS Office of Chief Counsel, where he worked on drafting regulations and other guidance and advising the IRS Exempt Organizations operating division, and as a Tax Law Specialist in the IRS Office of Tax Exempt and Government Entities, Rulings and Agreements, where he focused on exempt organization determinations and compliance. Before entering the IRS, he practiced law  in Los Angeles, working primarily with exempt organization and nonprofit clients, including churches and religious organizations, charities, and social clubs. He is a graduate of Thomas Aquinas College (B.A. Liberal Arts), Ave Maria School of Law (J.D.), and Loyola Law School (LL.M. Taxation).

• Education & Credentials

Patrick earned his LL.M. in Taxation with high distinction from Loyola Law School, his J.D. from Ave Maria School of Law, and his B.A. in Liberal Arts from Thomas Aquinas College. He is admitted to practice in California and the District of Columbia.

• Recognition & Leadership

Patrick writes regularly on election-year rules for exempt organizations, including “Religious Organizations and Political Activity: A 2026 Election-Year Guide,” “Charitable Organizations in an Election Year: Frequently Asked Questions,” and “IRS Enters into Consent Decree Limiting Application of Johnson Amendment; New Position Allows Churches to Endorse Candidates in  Certain Situations.” His other published work includes “IRS Form 990 Is Changing; Here’s Why Your Nonprofit Should Pay Attention,” “Back to Basics: Good Governance as Regulatory Prophylaxis,” and contributions to the firm’s In- Compliance political law updates.

• Professional Involvement

Patrick is a member of the TEGE Exempt Organizations Council and the Catholic Bar Association. He has spoken alongside William M. Klimon at the Conservative Organizational Entrepreneur School.

• Experience

At Holtzman Vogel, Patrick’s practice spans Non-Profit and Tax-Exempt Organizations, Faith-Based Organizations, Political Law, Corporate Governance, Government Ethics Compliance, and Higher Education Compliance. He counsels charities, social welfare organizations, and other exempt clients from formation and exemption applications through ongoing tax and governance questions, mergers, and dissolutions, and he drafts the contracts and agreements their transactions require.

Within government, Patrick served roughly ten years as a Tax Law Specialist in the IRS Office of Tax Exempt and Government Entities, Rulings and Agreements, working on exempt organization determinations and compliance, and later as an Attorney Advisor in the IRS Office of Chief Counsel, Exempt Organizations, where he drafted guidance and advised the operating division. Before joining the firm, he provided nonprofit tax and governance advice at a boutique law firm.

SESSION 1 – Ten Midterm Fact Patterns for Church and Charity Campaign Activity After the Unsuccessful Settlement | Patrick Sternal | 12:00pm – 1:00pm

This hour runs ten common election-season requests through the Rev. Rul. 2007-41 and 78-248 tests: a pulpit endorsement, livestream, repost, rented email list, leader’s use of title, candidate appearance, candidate forum, voter guide, facility rental, and ballot measure. For each, it identifies the key facts to collect—such as the speaker’s capacity, whether content stays posted, whether lists and space are offered to all candidates on equal terms at fair market value, how forum candidates are invited, and whether a ballot-measure effort is lobbying rather than campaign intervention. It also considers what the unentered National Religious Broadcasters consent judgment might have changed and practical ways to avoid §4955 taxes: a different  channel, a disclaimer where a leader speaks in an individual capacity, fair-market-value reimbursement, or an affiliate. Attendees take away a ten-pattern decision matrix linking each request to its controlling facts, likely answer, and fix, plus an advice-letter framework.

BREAK | 1:00pm – 1:10pm

SESSION 2 – Building the c3/c4/PAC Structure With the 501(h) Election and State Lobbying Registration| Patrick Sternal | 1:10pm – 2:10pm

This hour follows one advocacy client that wants to lobby and play a role in elections. Starting with the facts to collect—lobbying budget, staff time, communication types, list ownership, and jurisdictions—it builds the Form 5768 “h-election” call, a spending tracker coded to IRS, LDA, and state definitions, and a c3/c4/PAC cost-sharing agreement. It separates c3 lobbying (stay within limits and register when required), affiliate activity (maintain separation to avoid attribution), and campaign intervention (keep it out of the c3 and run it through the c4 or PAC). Attendees learn to update the tracker throughout the year, sign the cost-sharing agreement before sharing resources, and use the checklists to confirm registration and reporting deadlines.