COALITION CHAMELEON

The Federal Election Commission last week filed suit to stop the 1.7 million-member Christian Coalition from working hand in glove with the Republican Party to promote its candidates. Publicly, officials of the coalition, which raises $25 million a year, deny the allegations. Privately, however, the coalition is considering elemental changes to its structure. During negotiations to settle the suit, the coalition offered to form a political-action committee. It may go even further and, if pushed, convert itself into a more political organization, a move its leaders claim would actually strengthen the group. But outsiders have a hard time believing the coalition really wants to abide by the strict rules that apply to purely political entities: disclosure of contributors, prohibition of corporate gifts and a $5,000-a-candidate donation limit.

The coalition is also facing accusations of financial mismanagement. Its chief financial officer, Judy Liebert, was suspended in June after she instigated a federal probe into alleged overbilling by the coalition's direct-mail vendor, Hart Conover. Coalition officials say Liebert erred by taking her complaints outside the organization. Through her attorney, Liebert says she mentioned her concerns to coalition executive director Ralph Reed, who failed to act promptly on them. Ben Hart, an owner of Hart Conover, is one of Reed's golfing chums. Hart Conover denies any wrongdoing.

--By Jeffrey H. Birnbaum and Viveca Novak/Washington