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Adsfsdgasdg sdfgsd fgsdfbvsdfbvsdfgasdffasdf asThe legislation, introduced by Democratic State Sen. Ricardo Lara on Tuesday, would deny exemptions from state corporate taxes and taxes on items such groups sell. It would also require them to pay corporate taxes on donations and other forms of income.

Lara and LGBT advocacy group, Equality California, said the bill was aimed at groups like the Boy Scouts of America, which has faced increasing protests over its longstanding policy banning gay Scouts and leaders. An expert said she believed it was the first time such a law had been proposed, though it follows the loss of corporate sponsorship dollars to the BSA due to the policy.

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The California Association of Nonprofits, which has 1,500 member organizations, said it opposed the legislation in its current form, even though the group opposes discrimination based upon sexual orientation or gender identity as outlined in the bill, SB 323.

“ … we are against using the tax exemption as a way to compel change in a nonprofit's policies,” Kris Lev-Twombly, the group’s director of public policy, wrote late Wednesday in an email. “Stripping nonprofits of tax exemption on ideological grounds is a slippery slope. Nonprofits are the embodiments of free speech in our society. When we disagree with a nonprofit's policies, we should vote by moving our donation dollars and our volunteer feet elsewhere.”

The association said it is difficult to estimate how many of California's 50,000 nonprofits could be impacted because there is no reliable data on how many discriminate based upon sexual orientation.

“To lose state tax exemption in California could be significant for a nonprofit organization,” he said. “The bill is narrow in the sense that the provision applies specifically to youth organizations, but the question is how many organizations in California might be found to discriminate as outlined in the bill.”

The law would require...
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