Apparently this group endorses specific Republican candidates in elections and that's the issue.
"educates individuals on how to choose between 'imperfect candidates,' urging members to look at what the candidate says about the issues and see if their beliefs align with the
Bible." (
First Liberty Appeals Denial of Tax Exemption for Group Alleged to Have Republican Ties).
The following excerpt from the article (linked above) further explains why this group was denied.
In May the IRS denied 501(c)(3) status to the Texas-based prayer group Christians Engaged because it encourages its members to vote for state and national leaders. The federal agency specifically noted in its rejection that the group supports Republican candidates.
In its letter, IRS Director of Exempt Organizations Stephen A. Martin concluded the group does not qualify as an organization described in IRS Section 501(c)(3) because it is not operated exclusively for religious and educational purposes. Specifically Martin noted, "You are engaged in prohibited political campaign invention" and "You are also not operated exclusively for one or more exempt purposes... because you operate for a substantial non-exempt private purpose and for the private interest of the 'D party.'" The "D party" is a reference to the Republican Party, according to a "legend" provided at the top of Martin's letter to the religious group.
Martin also contends, "While you educate voters on what the
Bible says about issues, your educational activities are not neutral. The topics typically are affiliated with distinct candidates and specific political party platforms."