To amend the Internal Revenue Code of 1986 to clarify the restrictions on the lobbying and campaign activities of churches.

Amends the Internal Revenue Code, with respect to the tax-exempt status of churches (and certain auxiliaries or associations of churches and members of an affiliated group whose membership includes such an organization) to state that: (1) in the case of a church organization whose activities consist substantially of attempting to influence legislation, such status shall be denied only if the organization normally makes lobbying expenditures for each taxable year in an amount in excess of 20 percent of its gross revenues for the year; and (2) in the case of a church organization that participates or intervenes in any political campaign on behalf of or in opposition to a candidate for public office, such status shall be denied only if the organization normally makes such expenditures for each taxable year in excess of five percent of its gross revenues. (Under current law, church organizations are considered "disqualified" and excluded from operation of provisions governing expenditures by public charities to influence legislation.) Combines these limits for an aggregate limit of 20 percent where expenditures of both types are made.