The issue focused on the rights of non-profit organizations to issue tax-exempt status to political groups. The court held that the Government has the power to enforce the tax code in an effort to prevent any non-profit group from engaging in political activity. The court then turned to the question of whether the Government can prevent a non-profit group from engaging in political activity that is so severe that it would affect the ability of the group to receive tax-exempt status. The court held that the Government has the power