I eluded to some experience with the tax status of a nonprofit organization, because I was involved with incorporating one about 25 years ago. We wanted to apply for tax exempt status, so contributors could deduct their contributions from their tax basis. The IRS sent us a package of information about the tax classifications of various types of nonprofit, with the application. It stated very clearly that organizations which work to affect legislation cannot receive tax deductible donations. There weren't any ifs, ands, or buts about it. Affecting legislation was the purpose of our corporation, so we did not apply for deductible status. We even stated on the bottom of our literature in fine print that contributions were not tax deductible. We did not want to break the law, and we did not want to be party to other people breaking the law. We did not want to create that kind of problem for our contributors.
Over the years, I have noticed a lot of nonprofit corporations formed to affect legislation and elections operating with a tax deductible classification, and it sticks in my craw. That is exactly the purpose of the Tea Party, and everybody knows it. So I do not think it strange or wrong for them to be flagged. The IRS decision is supposed to be based on the corporate charter, the material actually used by the nonprofit, and its activity. At least, that was my understanding from reading the IRS material which came with the application.