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Her in and she said what she said. the i.r.s. cares about whether they are truly a tax exempt organization. does this one event mean they are no longer a tax exempt organization? i think the church will win on that. megyn: does the i.r.s. really care? i remember look at this when i worked in the d.c. bureau on the naacp which gets very political and it has tax exempt status. it hasn't been revoked. does the i.r.s. give you a lot of latitude? >> yes. however, it's trending especiallyn for not for profits in a different direction. in the state of indiana the governor says he's putting a cap on h...

I, myself, took hacks from the left for saying that the tea party was not racist. having said that, let's put some contrast to this. ben, what you said is that the terrible comments of one guy should mean the defunding of a whole organization of which only 1% to 3% of their budget really comes directly. >> good. then they can make it on their own. >> ben, let me finish. a 501c3, if you look at any fundraiser and heard what they had to say -- >> heritage foundation doesn't get a dime from taxpayers. they never asked for it. >> it's tax deductible. there is a host of conservative reform institut...

That the students were more upset about the money being spent or that it was spent on sarah palin? >> no, this is completely -- this is a political theater that has been created by senator yee and in order to pass his bill because 501c3s are not subject to california public record act. and the senator has been trying to pass his bill for the past two years. so he has been using us as a political pawn, a political theater. we are, by the way, we have never received any official notification from attorney general brown to investigate us on this matter of paper shredding or anything like that. we...

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