If Jarrett is not affiliated with the church and if the church gives a representative of the Republican party (or the candidate running against Obama) the opportunity (not that they had to accept it) to speak at the same or a similar function, neither representative's (or candidate's) actions constitute participation or intervention in a political campaign by the church. Not saying that happened here, as it likely didn't, but who knows.
For what it's worth, I don't think the letter from the Catholic Church would constitute participation or intervention in a political campaign (I know Senator Grassley likely would, but I don't think the courts or the IRS would).
Whether any of these things should be allowed or not allowed as a policy matter is a wholly separate issue.[/QUOTE
I would agree that IF a representative of the opposing party or opposing view was given equal time, whether they accepted or not, it may be an "out" for the church. I'd be extremely surprised if that was the case.
In general, if a church is getting a tax windfall by virtue of its tax exempt status, it is reasonable to expect that it is giving up some of its freedoms somewhere. In this case, the IRS is saying we aren't going to leave money in your coffers that you can turn around and use to promote one candidate or party over another because it would be, in effect, and indirect political contribution to that candidate or party. In essence, this is called an "inkind" contribution, and if you check FEC laws candidates are required to report the dollar value of "inkind" contributions and the name of the contributor.